Reply To: Traders Market Weekly: Markets Rupture with Soaring yields and Fund Outflows


The S&P 500 futures are up 10 points and are trading 0.3% above fair value.
The Nasdaq 100 futures are up 26 points and are trading 0.2% above fair value.
The Dow Jones Industrial Average futures are up 32 points and are trading 0.1% above fair value.

Personal income increased 0.3% month-over-month in August, as expected, personal spending rose 0.4% (consensus +0.2%) following a downwardly revised 0.2% decline (from +0.1%) in July, the PCE Price Index increased 0.3% (consensus +0.2%) and the core-PCE Price index, which excludes food and energy, jumped 0.6% (consensus +0.4%) following a downwardly revised unchanged rading (from +0.1%) for July.

On a year-over-year basis, the PCE Price Index was up 6.2%, versus 6.4% in July, but the core-PCE price Index was up 4.9%, versus 4.7% in July.

The key takeaway from the report is that the inflation the Fed says it can control (i.e. core inflation) did not move in a friendly direction in August; therefore, market participants can continue to expect the Fed not to be their friend with monetary policy.