Markets look to open lower today.
Market breadth is significantly negative as of Friday. Interest rates continue to move higher, with the Federal Reserve Bank, Federal Open Market Committee (FRB FOMC) press release and new policy statement will come out Thursday afternoon. The market will be tentative and hesitant until that interest rate announcement is completed.
We see the US equity market continue to fall, and significant negative market breadth on Friday. New lows in fixed income (corporate) were about 90:1 vs. new highs for bonds. Stocks were closer to 9:1 new lows to new highs.
We walk through Mortgage Backed Securities this morning (they are down), and how they work. We also walk through Verizon's schedule of debt and that we think we see Verizon buying back their own debt at a discount. This will increase their equity and earnings, and reduce future interest payments.
A few hours into the trading day and the market is negative today.