The Closing Look

Stocks fell on Tuesday as the Fed began their two-day meeting and government bond yields continued to fall across the globe. Before Tuesday’s open, the German 10-year bund yield slid into negative territory for the first time in history. Would you lend money to Germany for 10 years and pay them? The world of negative interest rates is worrisome and the outcome can not be healthy. The US dollar rallied after retail sales rose a more-than-expected +0.5% in May, beating estimates for 0.3%. Elsewhere, import and export prices rose +1.4%, beating estimates for 0.8% which signals inflation may be rising.

Gary’s Thoughts: Of main interest to us is the horrid action in financials. That needs to change. Not sure markets can hold up if this ugly continues. Credit card companies whacked as SYF announced consumers taking their time paying things back…uh oh! Rest of market is  blech!