3 hours ago
DoubleLine’s Gundlach says Treasury bonds look “attractive” right now and praises the Fed’s decision
Treasury bonds are doing well – at least for now, says Jeffrey Gundlach, founder and CEO of DoubleLine.
“I think government bonds are attractive,” he previously said on CNBC’s “Closing Bell.” “I find them quite attractive at the moment – not in the long term, but more in the short term.” He pointed to the rising interest costs the government faces on these bonds as yields rise, which can become a problem down the road .
Separately, Gundlach welcomed the Federal Reserve’s decision to keep interest rates stable in September.
“I think this is really one of the best decisions the Fed has made in a long time,” he said. “They’ve raised the forecasts for next year, unemployment is not as high, the economy is a little stronger… We have a lot of indicators that point to a slowdown.”
Treasury yields rose on Wednesday after the Fed said it would announce another rate hike before the end of 2023, pushing two-year and 10-year Treasury yields to multi-year highs.
—Pia Singh
3 hours ago
The market could become choppy, says the CIO of NorthEnd Private Wealth
Although the Federal Reserve refrained from raising interest rates in September, a hike is on the horizon – and that could rattle stock prices as the year ends, says Alex McGrath, chief investment officer of NorthEnd Private Wealth.
“Twelve of the current 19 governors are currently in favor of a further rate hike in the next two meetings before the end of the year,” he said.
“As we head into the fourth quarter with interest rate expectations remaining high, we will most likely see a choppy end to the year as markets digest a less favorable outlook for the growth assets that have driven the market for 2023,” McGrath added.
– Darla Mercado
3 hours ago
Stocks seeing the biggest moves after hours: FedEx, KB Home and Klaviyo
These are the stocks seeing the biggest moves after the closing bell:
- FedEx – Shares rose over 5% after the bell on better-than-expected fiscal first-quarter earnings results. FedEx’s adjusted earnings came in at $4.55 per share, versus analysts’ forecast of $3.71, per LSEG. The company’s sales of $21.7 billion were slightly below analyst expectations of $21.74 billion.
- KB Home – Shares of the homebuilder fell 2% in extended trading despite better-than-expected third-quarter sales and earnings results. KB Home reported earnings of $1.80 per share on revenue of $1.59 billion, better than analysts polled by LSEG expected $1.43 per share on revenue of $1.47 billion U.S. dollar.
- Klaviyo – The marketing automation company fell slightly 1% after its stock market debut earlier in the day. Klaviyo shares were trading at $36.75 on the New York Stock Exchange, above the company’s offering price of $30 per share.
—Lisa Kailai Han
4 hours ago
Stock futures open little changed
The futures hardly changed on Wednesday evening. This is how the most important indices were traded after hours:
—Pia Singh