While it was a tough day on Wednesday for common share prices income issues hung right in there–essentially flat on the day.
With the producer price index (PPI) coming in favorable to forecasts and retail sales coming in soft the 10 year treasury tumbled 16 basis points!!! The closing yield of 3.375% is the lowest close since 9/12/2022–about 4 months ago.
Right now the equity futures are off about 1% —while interest rates are essentially flat at 3.38%. Things can change in an instant of course so one never knows and in fact as I type this jobless claims just came in at 190,000–way under the 215,000 forecast– and interest rates are popping some and are at 3.41%. Once again employment numbers remain stronger than expected–so this once again reaffirms needs for higher interest rates (at least in the eyes of the Fed).
So here we go after 8 straight days of income issue gains–yesterday was flattish. I will be out of the office again today, but back in tomorrow. I plan to closely review our holdings tomorrow and see if there is a need for some tweaking after recent gains–I remain nearly fully invested and plan to continue to remain fully invested.