10-Year Treasury Yield
U.S. Treasury yields turned mostly lower Tuesday as uncertainty about the outlook for the economy and interest rates lingered. The yield on the 2-year Treasury was nearly 8 basis points lower at 4.576%. The 10-year Treasury yield was last more than 4 basis points to 4.25%. Yields and prices move in opposite directions. One basis point equals 0.01%.
Leading Indicators
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Gold
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FOMC Minutes
Fed officials expressed caution about lowering rates too quickly at last meeting, minutes show. The discussion came as policymakers not only decided to leave their key overnight borrowing rate unchanged but also altered the post-meeting statement to indicate that no cuts would be coming until the rate-setting Federal Open Market Committee held “greater confidence” that inflation was receding. The meeting summary indicated a general sense of optimism that the Fed’s policy moves had succeeded in lowering the rate of inflation, which in mid-2022 hit its highest level in more than 40 years. However, officials noted that they wanted to see more before starting to ease policy while saying that rate hikes are likely over. Members cited the “risks of moving too quickly” on cuts..
Nvidia Earning
Nvidia’s Data Center business is booming, up more than 400% since last year to $18.4 billion in fourth-quarter sales. Nvidia shares jumped 12% on Thursday morning, a day after the chip giant posted bumper earnings that beat Wall Street estimates, driven by excitement over artificial intelligence. Nvidia posted revenue of $22.10 billion for its fiscal fourth quarter, a rise of 265% year-on-year, while net income surged 769%. The U.S. tech giant posted revenue of $22.10 billion for its fiscal fourth quarter, a rise of 265% year-on-year, while net income surged by 769%, as the company continues to see a boost from excitement over artificial intelligence.
MBA Purchase Applications
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PMI Composite Flash
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Jobless Claims
The number of individuals in the U.S. filing new claims for unemployment benefits fell more-than-expected last week, suggesting strength in the labor market. Initial jobless claims for the week ending on Feb. 17 totaled 201,000, which was a decrease of 12,000 from the previous week’s revised level, according to latest figures from the U.S. Department of Labor. Insured unemployment was 1,862,000 for the week ending Feb. 10. Claims are hovering at historically low levels, Reuters reported.
CFNA
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PMI Flash
S&P flash U.S. manufacturing gauge climbs to 17-month high of 51.5, services PMI dips to 51.3
Exisiting Home Sales
Sales of previously owned homes rose 3.1% in January to 4 million units on a seasonally adjusted annualized basis, according to the National Association of Realtors. Sales were down 1.7% year over year. Existing home sales rose 3% to start the year, but higher mortgage rates are already hurting. Sales of previously owned homes rose in January, boosted by lower mortgage interest rates of November and December. Inventory of homes for sale in January increased to 1.01 million units, up 3.1% from January 2023, but still at a low 3-month supply. The median existing-home price for all housing types in January was $379,100, up 5.1% from a year earlier and an all-time high for the month of January.
Mortgage Rates
The average rate on a 30-year mortgage rose to 6.90% from 6.77% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.5%.The latest increase in rates reflects recent moves in the 10-year Treasury yield, which lenders use as a guide to pricing loans. Stronger-than-expected reports on inflation, the job market and the overall economy have stoked worries among bond investors the Federal Reserve will have to wait longer before beginning to cut interest rates.
Berkshire Hathaway
Berkshire Hathaway on Saturday reported a big rise in operating earnings in the fourth quarter, thanks to huge gains in its insurance business, while its cash pile expanded to record levels. The Omaha-based conglomerate posted operating earnings — which refers to profits from businesses across insurance, railroads and utilities — of $8.481 billion in the quarter ending December. That’s 28% above the $6.625 billion from the year-ago period. For the full year 2023, that brought operating earnings up to $37.350 billion, up 17% from $30.853 billion in the prior year. Berkshire also held $167.6 billion in cash in the fourth quarter, a record level that surpasses the $157.2 billion the conglomerate held in the prior quarter.
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