Fed widely expected to cut rates by 25 basis points, but will it be enough to boost stock markets?
Risk premiums in corporate lending remain very elevated – signaling potential for further difficulty
Shares in consumer spending, housing, and construction remain indecisive on mixed data
Click here to join DailyFX Analysts in discussing the Watch What the Fed Watches latest report.
|
Credit Market |
Last Week |
Current |
Change |
% Change |
Outlook * |
|
DJ Credit Default Swaps |
60.42 |
61.52 |
1.10191 |
1.82% |
Deteriorating |
|
10 Year Junk-Bond Spread |
425.00 |
408.43 |
-16.56 |
-3.90% |
Improving |
|
Credit Card Delinquencies |
3.41 |
3.49 |
0.08 |
0.08% |
Deteriorating |
|
Mortgage Delinquencies |
4.84 |
5.12 |
0.28 |
0.28% |
Deteriorating |
|
Consumer Credit |
9.6 |
12.2 |
2.6 |
2.60% |
Improving |
|
|
|
|
|
|
|
|
Stock Market |
Last Week |
Current |
Change |
% Change |
Outlook |
|
Dow Jones Industrial Average |
13675.25 |
13836.85 |
161.6 |
1.18% |
Improving |
|
|
292.56 |
297.13 |
4.57 |
1.56% |
Improving |
|
Dow Jones Financial Index |
666.96 |
687.16 |
20.2 |
3.03% |
Improving |
|
Dow Jones Retail Index |
120.26 |
122.31 |
2.05 |
1.70% |
Improving |
|
S&P Volatility |
20.8 |
20.54 |
-0.26 |
-0.26% |
Deteriorating |
|
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|
Economic Indicators |
Previous |
Current |
Change |
% Change |
Outlook |
|
Mortgage Applications |
-2.8 |
3.8 |
6.6 |
6.60% |
Improving |
|
New Home Sales |
735 |
770 |
35 |
4.76% |
Improving |
|
Personal Spending |
0.4 |
0.6 |
0.2 |
0.20% |
Improving |
|
Personal Income |
0.5 |
0.3 |
-0.2 |
-0.20% |
Deteriorating |
|
PCE |
2.1 |
1.8 |
-0.3 |
-0.30% |
Deteriorating |
|
Initial Jobless Claims |
313 |
331 |
18 |
5.75% |
Deteriorating |
Improving outlook means the Federal Reserve could use this indicator to support a rate hike. The opposite stands for deteriorating outlook.


