Coffee With Greta: Yields Spike, Stocks Fall As Fed Week Begins

DJIA Futures: -177 (-0.5%)

SPX Futures: -23 (-0.6%)

NASDAQ Futures: -81 (-0.7%)

Good morning friends!

Futures are falling as Treasury yields spike at the start of Fed week.

Let’s get right to it!

Treasury Yields Climb Ahead of the Fed

Treasury yields are rallying with stocks falling ahead of this week’s Fed meeting.

The 2-year yield is up 15 basis points at 4.49% while the 10-year yield is up 10 basis points at 4.05%.

Traders widely expect the Fed to hike rates by another 75 basis points on Wednesday.

But the market is also looking for some clarity on the bank’s future plans.

The Dow Jones is on track for its best month since 1976, up 14.4% so far in October.

The S&P 500 and the Nasdaq are also up for the month.

That puts Wall Street on track to snap its two-month losing streak.

Today is the final day of October before key economic data comes out later this week.

Jobs data begins on Tuesday with the release of the Labor Department’s Job Openings and Labor Turnover Survey.

ADP reports private payroll numbers for October on Wednesday.

The Fed decision is also on Wednesday.

And then the official October jobs report on Friday.

The central bank is looking for signs of slowing strength in the labor market amid its fight against inflation.

Oil prices are falling today after weaker-than-expected factory data in China and demand concerns due to the country’s COVID restrictions.

West Texas Intermediate crude futures are down 1.9% to just over $86 bbl while Brent crude futures are down 1.3% to $94.50 bbl.

But both contracts are still on track for their first monthly gains since May.

A new survey shows factory activity in China fell unexpectedly in October.

We’ve gotten a mix of earnings so far this season but this will be the busiest week so far.

Here are some highlights:

Tuesday AM: Pfizer (PFE), Uber (UBER)
Tuesday PM: Advanced Micro Devices (AMD), Airbnb (ABNB)
Wednesday AM: CVS (CVS)
Thursday AM: Regeneron (REGN), Moderna (MRNA), Marriott (MAR)
Thursday PM: Starbucks (SBUX), PayPal (PYPL), Block (SQ), Coinbase (COIN)