Lower to Mixed Stocks, Higher Rates, Precious Metals on Fire (E247)

DoubleLine Portfolio Manager Jeff Mayberry and Fixed Income Allocation Strategist Ryan Kimmel review the week ended Jan. 23. They survey a mixed bag for stocks (0:31), with the S&P 500 lower on tech and energy and materials the winners; fixed income (2:06) slightly negative on spillover effects from the selloff in Japanese government bonds and rates up across the Treasury curve; and commodities (3:40) surging higher on energy and precious metals. The macro front (5:43) brought the shutdown-delayed release of benign readings, to be taken “with a big grain of salt,” on the PCE Deflator for October and November; and a weakening in personal income, resulting in a declining personal savings rate. Topping the week ahead (13:36) will be the Federal Open Market Committee Meeting and Fed Chairman Jerome Powell’s news conference on Jan. 28. Fed funds futures price in a mere 3% probability of a rate cut at the FOMC meeting, rising to only 33% by the end of Powell’s mandate.