Pres. Trump is speaking and with so many balls in the air, his comments are of market interest.
- Says we have a bad Fed Chair.
- Will pick a new Fed Chair in the next few weeks.
On Iran:
- When asked about hell on the way to Iran, says you are going to have to figure it out
- He says it is a good idea if Americans about away from Iran.
- Says Canada wants a USMCA Trump says we don’t need it. (of course it was an agreement he made with Canada)
Crude oil prices are higher. The current price is trading at $61.19. That is up about $1.70 or 2.82%
- Trump says he would like the price of oil at $53 a barrel.
Last week Pres.Trump attempted to rally U.S. oil companies to invest heavily in Venezuelan oil extraction, offering assurances and pushing a big investment plan — but executives were cautious, especially ExxonMobil, and no major commitments were secured. Trump has since hinted at shifting support toward companies more willing to engage (like Chevron), and the broader strategy remains highly complex and contentious. Oil companies would need higher oil prices to justify the cost of extracting oil.
In other news,
The US treasury auctioned off $22 billion of 30 year bonds
The auction was met with strong demand:
- WI level at the time of the auction was 4.833%.
- High-yield came in at 4.825%
- Tail -0.8 basis points versus 6 month average of +0.5 basis points
- Bid to cover 2.42x vs 6 month average 2.34X
- Directs 21.3% vs 6 month average of 23.9%
- Indirects 66.77% versus 6 month average of 63.7%
- Dealers 11.9% versus 6 month average of 12.4%.
A look around other markets shows the major stock indices are lower. Yesterday the Dow and the S&P closed at record levels.
- Dow industrial average -0.78%
- S&P index -0.37%
- NASDAQ index -0.21%
Yields are moving lower helped by the strong auction:
- 2-year yield 3.524%, -2.3 basis points
- 5 year yield 3.737%, -2.9 basis points
- 10 year yield 4.167%, -2.0 basis points
- 30 year yield 4.828%, -1.2 basis points
Gold is trading down $-5 or -0.11% at $4593. That comes after trading to a new record high of $4634.58 earlier today.
Silver is still up $1.99 or 2.36% and $87.08. It traded to a new all-time high price earlier today at $89.11.
This article was written by Greg Michalowski at investinglive.com.