Dow crawled up 10, decliners slightly ahead of advancers & NAZ added 17.  The MLP index was fractionally lower to the 216s & the REIT index fell 3+ to the 357s.  Junk bond funds fluctuated & Treasuries had limited selling (more below).  Oil slid lower in the 69s & gold went up 6 to 1947 after yesterday's sharp decline.

AMJ (Alerian MLP Index tracking fund)

interest rate.  Mortgage applications to purchase a home increased 2% from the previous week & were 36% lower than the same week one year ago.  Today's homebuyers may be less influenced by weekly interest rate moves & more influenced by the state of the economy.  The stress on the banking sector, high home prices & a tight supply of homes for sale have all been weighing heavily on consumer confidence.  With fears over the banking sector subsiding somewhat, at least in financial markets, mortgage rates moved higher to start this week, according to a separate index from Mortgage News Daily.  Yesterday, it put the average rate at 6.75%.

Mortgage demand increases again, but interest rates are rising

Nike (NKE), a Dow stock, Q3 for fiscal 2023 showed revenue rising & net income dropping.  The athletic footwear & apparel company's Q3 revenues saw an approximate 14% jump year over year, to $12.4B & the company reported $10.9B in revenue for the the same period last year.  CFO Matthew Friend said in that the company "drove strong holiday sales with momentum continuing into the new calendar year" in North America, where quarterly revenue rose 27%.  Other regions that saw growth included Europe, the Middle East, Africa, the Asian Pacific & Latin America.  The Greater China region, on the other hand, experienced a single-digit revenue decline.  Diluted EPS was 79¢ & diluted EPS figure marked a 9% drop year over year.  Revenue & diluted EPS each came in above what was predicted.  Gross margin was 43.3%.  For the 330 basis point decline in the qtr, the company pointed to "higher markdowns to liquidate inventory; continued unfavorable changes in net foreign currency exchange rates; higher product input costs and elevated freight and logistics costs," according to its earnings release.  The athletic footwear & apparel company's inventory rose double digits from the $7.7B reported in Q3 last year, posting $8.9B this year.  Friend said in the earnings release that Nike has "made tremendous progress on inventory as we position Nike for sustainable and more profitable growth."  "Fueled by compelling product innovation, deep relationships with consumers and a digital advantage that fuels brand momentum, our proven playbook allows us to navigate volatility as we create value and drive long-term growth," CEO John Donahoe said.  The stock fell 1.51.
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Nike sees year-over-year increase in revenue, drop in net income for third quarter

Treasury yields nudged higher as investors awaited the Federal Reserve’s latest interest rate decision and guidance on the central bank's monetary policy path.  Today the 10-year Treasury yield was up by 1.5 basis points to 3.621% & the 2-year Treasury was trading at 4.229% after rising by 5 basis points.  Investors prepared themselves for the Fed's next interest rate decision, which is expected to be announced later today after the central bank's policy meeting.  A 25 basis point increase is widely anticipated.  That would be the 9th consecutive interest rate hike & the 2nd qtr-point increase in a row after a series of bigger rate hikes were implemented throughout 2022.  Just a few weeks ago, many investors believed Fed officials would reaccelerate the pace of rate hikes & announce a 50 basis point increase.  Fed Chair Jerome Powell had hinted at rates going higher than previously expected & indicated that the Fed's efforts to cool the economy were still ongoing.  However, the recent turmoil in the banking sector after the failures of Silicon Valley Bank & Signature Bank as well as Credit Suisse's takeover by UBS, shifted investor sentiment.  Many now believe that the Fed will favor stability & therefore opt for a smaller rate hike.  Investors will also be looking for guidance about future policy plans, especially regarding rate cuts & their timing.

Treasury yields inch higher ahead of Fed interest rate decision

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