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Stocks mixed, Fed’s Kashkari hints more aggressive rates needed, Cramer says market has decided a recession is coming, Mortgage rates jump into the sixes, BP joins other oil giants with huge profit
Stocks were mixed early Tuesday, although showing some signs of a rebound as investors were spooked by hints that the Federal Reserve is considering more aggressive interest rate hikes after strong jobs data
S&P 500 futures were up 2 points or +0.05%, while Dow Jones Industrial Average futures were down 55 points or -0.16%, and NASDAQ futures were up 34.75 points or +0.28%, Yahoo Finance reported.
The benchmark 10-Year Treasury was up +0.021 to .3.653% as of 8:49 AM EST, while the 2-Year Treasury was down -0.006 to yield at 4.45%.
In oil futures, WTI crude was up +1.19% and selling at $75.32 a barrel, while Brent crude was up +1.2% at $81.90 a barrel as of 8:51 AM ET.
Federal Reserve Chairman Jerome Powell was expected to speak at the economic club of Washington, and investors are hoping his comments will bring clarity. Investors are anxious after. Minneapolis Fed President Neel Kashkari said Tuesday that January’s blowout jobs growth is evidence the central bank has more work to do when it comes to taming inflation, CNBC reported.
“We have a job to do,” Kashkari said. “We know that raising rates can put a lid on inflation. We need to raise rates aggressively to put a ceiling on inflation, then let monetary policy work its way through the economy.”
Host of CNBC’s Mad Money, Jim Cramer, says the market has already decided that a recession is coming. His comments follow other recent advice, telling investors we are in a bull market and recommending to buy the dip, Bitcoin News reported.
“It does not take too long for this market to go negative,” Kramer tweeted on Monday. “It’s already re-digested Friday’s news and decided that the Fed will tighten and create a recession no matter what.”
After declining by double digits last week, almost every mortgage average rate grew by stronger double digits. The data compiled by Credible put the range of 30-year fixed mortgage rates at 6.875%, with the 15-year and 10-year fixed rates at 6.500%, FOXBusiness reported.
BP has joined other energy giants Exxon Mobil, Shell, and Chevron in posting record annual profits. The British oil major announced a profit of $27.7 billion for 2022, more than double its $12.8 billion profit the previous year, CNBC reported. BP also announced a $2.75 billion share buyback and boosted its dividend by 10% to 6.61 cents per ordinary share.
