And now let's get out to Chicago to see how the trading day is shaping up that now with the volatility index falling 5% yesterday as the yield our correspondent Mark Payton will get us caught up on the boards that traders there are watching.
Good morning, Mark.
So we're seeing a lot of movement, a lot of price action across all asset classes this morning.
So take us through the key indices that people are paying attention to this morning.
Yes, good morning, Remy.
So the S&P 500 is coming off a slightly higher session, but we're seeing a little more caution this morning as investors continue to weigh interest rates, inflation, and the strength of the economy, which you were just talking about.
The VIX remains around the 15 level, close to 16, it's still relatively low historically, so we're not seeing a major fear signal in the market, but it does tell us that traders are keeping an eye on some of these uncertainties.
Even small upward moves are worth watching.
The VIX starts climbing.
That can tell us that the traders are becoming more defensive and paying more for protection against potential market swings.
So right now I describe the mood as cautious but certainly not fearful.
And then the Russell 2000 our look at small cap stocks is showing some strength, but it's also sensitive to interest rates and the health of the US economy.
So the rut is an important one to watch as traders try to determine where this market goes next.
Yes, and Mark, speaking about the health of the US economy, all eyes have been on retail earnings this weekend in New York morning trade, we are looking at shares of Walmart pulling back by as much as 7% in pre-market trade.
So what do you make of this reaction we're seeing on the heels of Walmart's earnings report?
Yes, it's interesting.
It's an indicator, right?
So Walmart brought in about $108 billion in revenue for the quarter.
For traders, Walmart has really given us some mixed signals about the American consumer.
Consumers are still spending, but they're becoming more selective about where that money goes, and investors are trying to determine whether that's a sign of resilient consumer or one that's beginning to feel more pressure.
The good news is Walmart raised its full year outlook, so.
This isn't necessarily a signal that the consumer is weak.
I think the takeaway for traders is that the American consumer is still spending but doing it more cautiously, and investors are watching very closely to see whether that trend starts to show up across more companies and more sectors.
The trend is similar to the VIX that I was talking about.
Investors are cautious.
Consumers are cautious.
Neither is hitting the panic button just yet.
Yeah, Mark, I think caution is the key word here.
Thank you so much for joining us from Chicago this morning with the latest.
