1. Dow to open higher after breaking a 3-seater victory row
Traders are working on the floor of the New York Stock Exchange.
Spencer Platt | Getty Images
2. Strong retail earnings are another healthy consumer sign
Customers shop in a Target store in Chicago.
Scott Olson | Getty Images
Shares of Target and Lowe's rose high in Wednesday's premarket after recent retailer earnings showed that the US consumer remained strong. Target received estimates and revenues from the second quarter. The company also raised the outlook for the full year. Lowes reported better than expected Q2 results on the top and bottom lines. A day earlier, its major rival Home Depot also generated strong earnings. The strength of the consumer comes when the Fed considers another interest rate cut at the September meeting.
3. & # 39; Bond King & # 39; Gundlach: Fed loses control of prices
DoubleLine Capital CEO Jeffrey Gundlach says that the Fed is losing control of interest rates, citing evidence that they added the 2% to 2.25% lending rate. It is higher than any part of the Treasury's yield curve, he noted. "What else do you need to call it an inversion?" Gundlach said in the Reuters interview. "Everyone analyzes all these little arbitrary things. But we have an inversion." Last Wednesday, the 10-year government yield reversed and went below the 2-year return, a move that has preceded any recession over the past 50 years. However, a recession does not happen immediately, and it takes on average up to two years to realize.
4. Negative return on corporate bonds hit $ 1 trillion.
Government bonds in Europe and Japan are not the only interest-bearing instruments that are yielding negative interest rates these days, with a negative return on corporate debt that recently passed a billion trillion dollars, in a continuing sign of global economic shift. While negative returns on the government side have been around for a while, negative returns on the company's debt are a relatively new thing, rising from just $ 20 billion in January, according to market researcher Jim Bianco.
5. Trump is now saying he is considering a cut in payroll tax
President Donald Trump answers questions in the Oval Office of the White House in Washington, August 20, 2019.
Kevin Lamarque | Reuters
President Donald Trump said he was "thinking" of cutting payroll taxes, less than a day after the White House denied such a move was assessed. "Wage tax is something we think about, and many would like to see it, and it has a huge impact on the workers in our country," Trump told reporters at the White House on Tuesday. Trump went on to say he has "been thinking about payroll taxes for a long time." But he warned that "no matter what we do now, it will not be done because of the recession."
CNBC before the clock update
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