Brent tops $104 on Iran fears as Dow futures slide 480 points
Tanker attacks and reports of possible U.S. strikes on Iran hit risk assets, with the 10-year still near 5.33%.
- >$104Brent
- -480Dow futures
- ~5.33%10Y yield
- ~102.5DXY
For VardonThis is a direct tax on the lower and middle income shopper you own. PepsiCo cutting its profit outlook on weak North American demand this morning is the first read of what $100+ oil and 5%+ rates do to staples volumes; favor value and off-price over discretionary until crude cools.
Crude jumped overnight, with Brent up more than 4% to above $104 and WTI above $91.50, after reports that the Pentagon is preparing for potential military strikes on Iran, new tanker attacks in the Persian Gulf and Strait of Hormuz, and U.S. offshore production disruptions. Dow futures fell roughly 400 to 480 points, with S&P 500 futures down 0.3% to 0.6% and the Russell 2000 off 0.9%. The 10-year yield sits near 5.32% to 5.35% and the 30-year near 5.72%, close to 2002 highs, after Fed minutes and Governor Waller kept another hike on the table. On the consumer tape, PepsiCo lowered its full-year core profit forecast and announced more cost cuts, citing weaker North American snack and beverage demand as shoppers pull back under inflation and higher gas prices. Jobless claims and several Fed speakers are due today.