U.S. Stock Futures Are Lower While Yields Are Holding Steady

United Asset Strategies |

U.S. stock futures are lower:     Yields are holding steady after yesterday’s release of FOMC minutes.  Fed officials are strongly evaluating a potential 50 bps increase and an agreement on shrinking the balance sheet.  Specifically, the Fed is expected to allow up to $60 billion of Treasuries and $35 billion of mortgage backed securities to mature each month without being replaced. Treasury yields were up post announcement.  Last week’s jobless claims were 166k, the lowest level since 1968, versus estimate of 200k.  S&P futures are slightly lower post announcement and earnings season starts next week. According to FactSet, S&P 500  earnings are expected to increase 4.6% compared to the similar period last year.  Asian markets closed lower as China continues with its tough restrictions in Shanghai, its most populous city.  European markets are higher.