Devon Energy Corp DVN:NYSE

Last Price$64.46NYSE Previous Close - Last Trade as of 7:00PM ET 8/11/22

Today's Change+4.41(7.34%)
Bid (Size)$64.30 (1)
Ask (Size)$64.85 (1)
Day Low / High$61.76 - 64.88

Equities Mixed Midday, Yields Slump as Powell Reiterates Focus on Lowering Inflation

1:30PM ET 6/17/2022 MT Newswires
Stocks in midday Friday trading, following a sharp selloff the day before, as Jerome Powell reiterated the Federal Reserve's commitment to rein in inflation.

The Dow Jones Industrial Average fell 0.1% to 29,904.2. The S&P 500 rose 0.1% to 3,669.5, and the Nasdaq Composite traded 1.3% higher at 10,786.9. While energy and utilities led decliners, the technology and consumer discretionary sectors were among top performers.

The US 10-year yield sank 9.6 basis points to 3.21% intraday, declining from the 3.49% level it touched a day before the Federal Reserve unveiled its most aggressive target rate hike in almost three decades to fight inflation. There are concerns that a quick tightening of monetary policy could tip the US economy into a recession.

The US 5-year yield at 3.32% intraday was above the 30-year yield of 3.26%, implying the curve between the two maturities is inverted. Inverted curves may be a signal of an upcoming economic recession.

Federal Reserve Chair Jerome Powell on Friday said the central bank is "acutely focused" on lowering inflation, echoing comments from earlier in the week when the Federal Open Market Committee raised the policy rate by 75 basis points.

Raising the cost of capital does little to address supply-side constraints resulting from the aftermath of the COVID-19 pandemic or the conflict in Ukraine, Stifel Nicolaus Chief Economist Lindsey Piegza said in a research note.

"Despite the chairman's declaration Wednesday during the press conference that the Fed is not trying to induce a recession, this accelerated pathway [of interest rates] will almost assuredly result in negative growth, best case scenario, or worse, stagflation," Piegza said in the note.

West Texas Intermediate crude-oil futures plunged 6.4% to $110.07 per barrel. The five worst performers on the S&P 500 were energy companies, including Diamondback Energy (FANG), Devon Energy (DVN), and ConocoPhillips (COP).

The dollar index, a measure of the strength of the greenback against a basket of major currencies, jumped 1.2% to 104.91.

In economic news, US industrial production rose by 0.2% in May, compared with expectations for a 0.4% increase in a survey compiled by Bloomberg, and following an upwardly revised 1.4% increase in April.

In company news, BetMGM, a sports-betting partnership between MGM Resorts International (MGM) and Entain, said it partnered with Carnival (CCL) to provide retail and mobile sports betting and online gaming services to cruise ship customers. Shares of Carnival jumped 7%, the biggest gainer on the S&P 500. MGM Resorts was trading 1.7% higher.

Gold was down 0.4% to $1,842.20 per ounce, and silver fell 1.2% to $21.61 per ounce.