Press release from Business Wire
Wall Street Webcasting Presents: Wells Fargo Securities: “A “Goldilocks” Marriage of an Accommodative Fed & Low Vol Continues as the Economy Shows Signs of Life.”
Wednesday, July 09, 2014
Wall Street Webcasting Presents: Wells Fargo Securities: “A “Goldilocks” Marriage of an Accommodative Fed & Low Vol Continues as the Economy Shows Signs of Life.”10:20 EDT Wednesday, July 09, 2014
NEW YORK (Business Wire) -- Wall Street Webcasting has prepared and provided for you an exclusive broadcast of Wells Fargo Securities own, Rich Gordon. Gordon is highly recognized for his weekly narrates regarding the fixed income strategy at Wells Fargo Securities (NYSE:WFC). This week, Gordon explains the recovery in the U.S.'s economy that seems to be persisting for the time being.
Thursday's Nonfarm Payroll's report afforded some clarity around the improvement seen in the U.S.'s economy. There were 288,000 jobs added to the market in the month of June, marking the fifth straight month of there being over 200,000 jobs added. The unemployment rate also decreased to 6.1%, showing a healthy improvement since last summer. This indicates the strongest growth streak seen in many years.
The upward course of economic growth seems to be offbeat with Fed Chairman, Janet Yellen's, comments at the recent IMF meeting. She didn't appear to be overly concerned with the recent increases in the inflation rate, which has moved back towards 2%. The growth rate of average hourly earnings remains near historically low levels, which supports the view that there is still enough slack in the labor market that recent increases in the inflation rate are mostly ephemeral rather than structural.
Broad-based stock indices continue to reach historical highs. The S&P rose another 1 ¼% last week and is up 7% year to date. Moving averages continue to steadily climb higher and there hasn't been any momentum divergence. On the other hand, the past couple of weeks have proven to be less than kind to fixed income investors. The 10-Year Treasury Yield backed up by 15 basis points between June 27th and July 3rd and spreads have moved a little wider over the past few weeks.
Different parts of the yield curve are moving in completely different ways. The slope between the intermediate and the long end of the curve has continued to flatten. The 5s/30s spread chart demonstrates that this part of the curve is once again reaching the flattest levels over the past year. Contrariety, the Bank Carry Trade is reaching its steepest levels over the past year.
To hear a more in depth explanation of the booming economic data, please tune into Wells Fargo's latest video.
Please visit the following link to view the video:
Wall Street Webcasting
Heather Capizzi, 201-683-2100