Treasury Secretary Larry Summers argued there will be need for Volcker-style aggressiveness at the Federal Reserve to tame inflation. economy can achieve a “soft landing” as soaring inflation declines. Some “price pressures are starting to cool,” he said, adding that he expects the U.S. “I think we’re on the backside of the pig passing through the python,” said David Waddell, chief executive officer and chief investment strategist at Waddell & Associates, in a phone interview Tuesday.
Investors will be watching for potential signs that persistently high inflation may be easing. Meanwhile, May’s inflation data, as measured by the consumer-price index, will be released Friday. In One Chart: Why stock-market investors get ‘squirrelly’ when bond yields top 3% The 10-year yield fell 6.8 basis points Tuesday to 2.969%, according to Dow Jones Market Data.
Hovered around 3%, a level that seems to make investors jittery. See: Target’s steps to reduce inventory glut are correct but are a few weeks late, analyst saysĬhoppy trade in the stock market also came as the yield on the 10-year Treasury note Investors are trying to determine whether their results suggest the start of a potential recession, or just a shift in consumers spending to services from goods in the economic recovery from the pandemic. Several large retailers have delivered mixed earnings and outlooks in the latest quarterly reporting period, pressuring stock prices. Was the sole sector in the S&P 500 that closed lower Tuesday, with Etsy Inc. Disappointing results from Target on May 18 sent stock indexes skidding, highlighting fears that surging inflation was beginning to cut into corporate earnings. Shares of Target closed 2.3% lower Tuesday and have plunged 42% from their 52-week high, FactSet data show.
Read: Retailers hit with ‘double-whammy’ as inventories rise, consumer sector stocks punished in May The plan includes markdowns, canceling orders and removing inventory, along with price hikes to offset higher fuel and transportation costs, and supply chain adjustments such as increased holding capacity near U.S. +2.46% announced on Tuesday morning a plan to reduce its excess inventory and revised lower its operating-margin guidance. “The shoe has yet to drop with respect to earnings.” “The market is still trying to digest this tug of war” between inflation and the prospect of recession, said Don Calcagni, chief investment officer at Mercer Advisors, by phone Tuesday. The stock market ended higher after flipping between gains and losses in the wake of a profit warning from retailer Target Corp.
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