Monday's Market Minute: Markets Dealing With Everything Everywhere All At Once

Investors and traders are waking up to a busy Monday morning with multiple focal points. Let's begin with how the U.S. Treasury stepped up over the weekend: the Fed reassuring SVB depositors that they will have full access to their funds and taking control of Signature Bank SBNY. First Republic Bank FRC was down over 70% pre-open this morning — last I Iooked, it was off its low. Treasury Secretary Janet Yellen said this is not a bail out, and taxpayers will not pay the bill. President Biden is expected to speak this morning; he said he will hold those responsible accountable.

The ongoing banking debacle has had major ramifications on U.S. yields. The two-year has fallen 70 basis points and is back below 4.50% — the most since Black Friday 1987 as rate hike expectations have shifted abruptly. Goldman Sachs GS says they no longer expect the Fed to raise rates at the upcoming March meeting.

This week, in terms of economic data, keep an eye on the Consumer Price Index tomorrow, which gives us a look at inflation. On Wednesday, we get a look at the Producer Price index and Retail Sales. Later in the week, we get some some housing data, weekly Jobless Claims, and Consumer Sentiment to close out the week Friday. Friday is also Quad Witching. 

As far as earnings, we have a few companies reporting quarterly results to keep an eye on. Lennar (LEN), Guess (GES), Adobe (ADBE), Five Below (FIVE), Dollar General (DG), Blue Apron (APRN), FedEx (FDX), and Jabil (JBL) will all open their books to investors.

Lastly, gold is sharply higher with the move lower in the U.S. dollar and rates. Keep an eye on commodities: many expect recent developments to bolster prices in cotton, copper, and some of the other products that are heavily influenced by the U.S. dollar.

Image sourced from Shutterstock

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.