[ad_1]
On Monday, Federal Reserve Chair Jerome Powell curtailed the stock market’s expectation of another jump rate cut of 50 bps. Powell said that the Fed will more likely cut rates by 25 bps at a time. It is not in a hurry to cut.
Investors may ease the aggressive buying of the 10+ Year Treasury (IEF) and 20+ Year (TLT). Powell said the economy is in solid shape and does not need as big a rate-cut stimulus.
However, if the economy slows after than the FOMC expects, the committee has the option of cutting rates at a faster pace.
This Friday, the Bureau of Labor Statistics will post non-farm payroll data. Job growth is unlikely to slow at an alarming rate. The economy continues to add plenty of public sector jobs. Healthcare jobs are also in demand. As the holiday season approaches, temporary jobs for the retail sector will lift future job reports.
The transport market is watching the job situation in the U.S. East and Gulf Coast ports. Yesterday, the union did not accept new wage offers. 45,000 port workers are involved in negotiating a new labor contract.
ZIM Shipping (ZIM), which will open at a 52-week high, is in a good position if a strike unfolds. Investors may consider A.P. Moeller-Maersk (AMKBF), too.
[ad_2]
