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Author Message   Entrepreneur Kurra Bewarse Username: Entrepreneur Post Number: 3939 Registered: 05-2011 Posted From: 24.164.46.35 Rating: N/A Votes: 0 Posted on Wednesday, January 19, 2022 - 4:22 pm:    Market Briefing: Disappointing action The stock market continues to struggle to muster a concerted rebound effort. The confounding aspect today is that bond yields are down, yet stocks aren't responding favorably to that move. Currently, the major indices are at, or near, their lows for the day. Recall that yesterday's sell-off -- and the weakness seen since the start of the year -- has been blamed on rising long-term rates and concerns about a more aggressive Fed. The 10-yr note yield is down four basis points today to 1.83% (its low yield for the day), with strong demand at the 20-yr bond auction helping matters, but it hasn't made a difference for the stock market. In fact, a second rebound effort by stocks today faltered after the bond auction. Just not a lot of risk appetite at the moment given the lackluster response to earnings news, the geopolitical angst looming in the background, and the specter of a more aggressive Fed hanging over the stock market. On a related note, the FOMC is holding its policy meeting January 25-26 and Fed Chair Powell will conduct his press conference on January 26 following the conclusion of that meeting. It is reasonable to expect continued volatility in front of that meeting (and perhaps after it). Today's losses are more modest in scope, but disappointing nonetheless considering (a) they are coming on top of previous losses and (b) they are being led by the cyclical sectors. The financial (-1.2%) and consumer discretionary (-1.2%) sectors are pacing the downside action. The S&P 500 and Nasdaq Composite are down 0.4%; the Dow Jones Industrial Average is down 0.5%; and the Russell 2000 is down 0.8%.