The S&P500 closed at record highs on Tuesday before the holiday yesterday–and now equities are up relatively sharply this morning. Once again it appears that tech issues are leading the charge as NASDAQ is charging higher. The 10 year treasury yield is trading around 4.25% as it awaits some guidance (from economic news) on where to move next.
We have jobless claims in a hour–more important than it has historically been as folks focus on inflation numbers as well as employment as key to future rates. Then we have building permits and housing starts as well as the Philly Fed Survey released at the same time.
Over night we had the Swiss Central bank cut interest rates while Norway and Bank of England held steady. Any cuts in Europe add a bit of pressure on the Fed to cut, but honestly Jay Powell is going to hold firm for month or 3–more data is needed–always need more data..
Tuesday Bank of Hawaii (BOH) priced a new issue of preferred with a 8% coupon. I posted a link to a Morningstar analysis of BOH and it is worthwhile to review this before making a buying decision. BOH has potential issues with commercial real estate so care must be taken.
Today or tomorrow it is likely I will make a purchase of baby bonds or preferred stock. Last week I bought in the mid level levels with a purchase of the Spire (SR) 5.90% perpetual preferred (SR-A) and in the CHS 6.75% perpetual (CHSCM). Both buys were ‘adds’ to current positions as I move toward a 60% weighting of equities/baby bonds in our portfolios–a slow move.
