Yikes–Fed Ex is getting crushed today after missing their revenue and earnings mark yesterday by a mile. Fed Ex is one of those ‘canary in a coal mine’ companies and this is not good news for the economy in general–not that I really need further data on the current (or future) recession. While economic data has held up I suspect we will see some really poor data soon with mortgage rates over 6%–the refi piggy bank has dried up mostly (home equity loans are alive and well though) and higher interest rates and inflation are crushing the middle and low class.
I see folks with too much time on their hands are lining up to purchase the new Apple phones and watches–certainly I won’t be one of them. I love Apple products–I wear a Apple watch and use an iPhone. I am always many models behind the latest and greatest phones. My wife is more willing to pay up for the newest phone (we always pay cash for them–no buy now pay later crap for us) and I will admit the cameras are very high quality on the newer phones, but to pay over $1000–not me.
Time fly’s when you are having fun and already we are at the time for the FOMC meeting starting on Tuesday with the Powell news conference Wednesday. A 75 basis point hike is in the cards with a 100 basis point hike possible, although I don’t think likely. Interestingly we have numerous housing numbers being released Monday, Tuesday and Wednesday. The home builders index, existing home sales, buildings permits and housing starts all to be released before the interest rate hikes–will be interesting to see what these stats are telegraphing.
Well the S&P500 futures are off by almost 1% right now as the sour mood of the equities markets continues. The 10 year treasury is hanging in there at around 3.46%, although with QT starting in earnest this month there will be upward pressure.