Beat the Street: Risk off as investors eye jobs; bond yields; Fed comments; OPEC+; UAW
Wall Street is set for a muted open as 10-year yields hit fresh 16-year highs. Fed comments keep investors wary. Oil slips ahead of the OPEC+ outcome and dollar strength.
Brent slides downhill ahead of OPEC+
In this episode of Beat the Street, financial analyst and host Angeline Ong discusses the latest news and updates in the stock market before it opens for trading. She says investors are being cautious because of fears about the job market and the high Treasury yields.
Ong says the price of Brent is dropping because of mixed information about how much oil is available, negotiations between oil-producing countries and the strength of the US dollar. Simply put, there is much uncertainty about how much oil remains and how much it costs, which is causing the price to drop.
The US automobile industry strike, specifically at General Motors and Ford, is negatively impacting the bottom line for these companies - and the amount is increasing each week. Ong shows charts to demonstrate how the strike is affecting the performance of GM and Ford stocks.
Inflation is tied to the price of oil
With regard to the upcoming US job market report, Ong says that Atlanta Federal Reserve president Raphael Bostic's comments on inflation are very important because inflation is related to the price of oil.
The Federal Reserve (Fed) is also in the news as its leaders disagree about how much they should raise interest rates.
Boeing eyes new skies
Boeing, the commercial and military aircraft manufacturer, has battled stormy headwinds in recent years, but now planning to make more planes.
The Reserve Bank of Australia has decided to keep interest rates steady for now. In terms of the current market, Ong says people are being more cautious now with their spending because they think the government will make it harder for them to borrow money in future.
For more information about trading, follow @AngelineOng on Twitter and on IG.com.
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