Yields and oil hold steady before Fed, Netflix and AT&T slide premarket

what happened

According to Market Talk, U.S. Treasury yields are little changed as investors wait for more economic data before the Federal Reserve meets next week. The 2-year yield sits near 4.772%, while the 10-year trades around 5.100%. The Treasury will also reopen 20-year bonds in a $13 billion auction. CME FedWatch data put the odds of a rate increase by December at roughly 75%.

Oil futures are steady. The December WTI contract has become the front month and trades at $97.72 a barrel, while Brent is down 0.3% at $108.51. Ritterbusch & Associates warns that much of the recent rally reflects higher risk appetite rather than a real shift in global crude balances. Bitcoin, according to Coinglass, has stayed above $82,500 for most of the past day.

In company news, Netflix falls 6.3% premarket after quarterly revenue growth slowed to its weakest pace in three years. AT&T drops 3.5% even though revenue rose 5.3% to $32.3 billion, beating estimates. Super Micro Computer jumps 12% after preannouncing a gross margin of 12% to 12.5%.

why it matters

Rates and energy are the main drivers for markets right now. High yields and expensive oil weigh on risk appetite, while the possibility of a December rate hike adds pressure on growth stocks. Earnings reactions are mixed, so individual share moves will depend on guidance details.

market impact

US bonds, oil, Bitcoin: high yields and oil prices set the tone, Fed rate expectations weigh on growth stocks

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