tuesday market open after separate warnings monday of possible recession and “fragile liquidity” from two influential global financial leaders investors woke tuesday to fresh troubling news from the bank of england boe the uk central bank is expanding bond purchases to prevent what it called “fire sale dynamics” that could threaten economic stability stock indexes which had their fourthstraight decline yesterday came under pressure ahead of the open and flirted with new twoyear lows still moves in any direction could be limited today considering all the data directly ahead especially the inflation reports tomorrow and thursday in addition tomorrow brings minutes from september’s federal open market committee fomc meeting treasuries which were closed for the holiday yesterday began their new week with yields near 39 for the 10year treasury note up about 40 basis points from last week’s lows overnight the yield initially jumped to 4 before taking a breather but the slide in yields from their highs didn’t seem to help stocks one thing that might ultimately weigh on yields and appears to be hurting commodity prices is news of more covid19 cases in china the country added to its pandemicfighting measures today and new lockdowns could mean more pressure on that huge economy major bank earnings and analysts’ calls loom later this week but jpmorgan chase jpm ceo jamie dimon got a head start on q3 commentary monday in a cnbc appearance that appeared to darken the market’s sense of gloom he thinks the united states and global economies are likely to fall into recession sometime in the next six to nine months during the morning broadcast yesterday dimon said the benchmark sp 500® spx could fall by “another easy 20” from current levels adding that “the next 20 would be much more painful than the first” dimon did say however that balance sheets are in pretty good order there’s a lot of attention now on credit markets but there aren’t a lot of defaults or expectations for defaults getting priced in later monday fed vice chair lael brainard became the latest fed speaker to deliver a hawkish economic diagnosis saying that monetary policy “will be restrictive for some time” to ensure inflation returns to the fed’s 2 target she said the moderation in demand due to monetarypolicy tightening is only “partially realized” she also warned of “fragile liquidity in core financial markets” brainard implied that the fed would proceed in a “datadependent” manner this appeared to help the markets around midday monday because it implied the fed might be willing to consider moderating rate hikes if data start losing ground that’s not a prediction but it seemed to be the market’s interpretation of her words the nasdaq100® ndx dipped to a new twoyear low following dimon’s words and the cboe volatility index®vix popped up above 33 intraday yesterday for the first time since late last month and it could remain elevated as investors await inflation data tomorrow and thursday see more below vix was again above 33 this morning tomorrow and thursday respectively bring muchawaited producer price index ppi and consumer price index cpi reports respectively analyst consensus from briefingcom suggests we’ll see a 02 rise in both headline ppi and cpi with core ppi rising 03 and core cpi up 04 from a month earlier any positive monthly numbers at this point could be read as bearish because it means prices are still rising despite the fed’s inflationfighting efforts there’s also some important inflation data later today when the federal reserve bank of new york releases consumer inflation expectations for september previously oneyear expectations fell to 57 in august from 62 in july the fed has said it’s very focused on inflation expectations so this report could be a bigticket item this week also marks the official start of q3 earnings season while many consider friday the official start due to bank earnings that day pepsico pep kicks things off early tomorrow the food and beverage giant’s results will follow pretty strong showings recently from some smaller food and beverage competitors thursday marks the first megaearnings day featuring walgreens boots alliance wba taiwan semiconductor tsm domino’s pizza dpz blackrock blk and delta dal then some of the big banks step up to the plate friday morning their narrative is likely to set the tone for the rest of the q3 earnings season monday was the fourthstraight lower session after last week began with a big rally the spx fell 075 to 36124 staying just above the nearly twoyear low below 3600 posted late last month the dow jones industrial average® dji finished the day down 032 to close at 2920281 while the nasdaq100® ndx lost 1 to close at 1092697 the russell 2000® rut fell 034 but unlike the spx and ndx isn’t near recent lows energy stocks caused most of the pressure on the spx yesterday as wti crude cl prices sank amid recession fears energy has been the one sector holding up well lately in the consumer world wba shares got a nice bounce ahead of earnings later this week merck mrk also popped nicely another sign that some investors may be turning toward healthcare stocks as they seek what may be perceived as “safer” parts of the market though no investment is truly “safe” the us dollar index dxy remained firm rising above 113 it hovered near that level this morning holding on for dear life since the end of march when stocks weren’t far from their alltime highs investors have withdrawn about 80 billion from stock mutual funds and exchangetraded funds the wall street journal reported citing data from the investment company institute that sounds pretty massive until you consider that us and international stock funds held 193 trillion at the end of march so even though inflation can’t seem to drop and stocks can’t seem to rise investors have taken only 04 of their money out of stock funds the newspaper noted what does this tell us there’s a lot of money that remains in the market despite the prolonged descent which might back up the words dimon of jpm had yesterday about there being more room for stocks to decline watching the investors the investor movement index® imxsm fell to 447 in september from 482 in august the imx is td ameritrade’s proprietary behaviorbased index aggregating main street investor positions and activity to measure what investors actually were doing and how they were positioned in the markets after bucking the trend and increasing exposure to the markets for the first time all year in august td ameritrade clients once again lowered exposure in september from the fed’s commitment to a hawkish approach to fighting inflation to historic swings in currency values to mixed jobs data and crude oil taking a nosedive retail traders took a riskoff approach in september leaning into fixed income and investing in names built on solid fundamentals what’s being bought or sold interestingly it looked like investors tracked by the imx did increase their exposure to some of the info tech companies that have been falling including intel intc nvidia nvda advanced micro devices amd and apple aapl during september having said that tech stocks including semiconductor companies were among the worst performers again monday after a dismal end to last week the philadelphia semiconductor index sox fell another 3 monday still stinging in part from last week’s amd warning of a q3 revenue shortfall some of the major names sold in september by investors the imx tracks included netflix nflx exxon mobil xom and bp plc bp oct 13 september consumer price index cpi and earnings from delta dal domino’s dpz progressive pgr and walgreen’s boots alliance wba oct 14 september retail sales october michigan consumer sentiment early august business inventories and earnings from citigroup c jpmorgan chase jpm wells fargo co wfc morgan stanley ms pnc financial pnc us bancorp usb and unitedhealth unh oct 17 october empire state manufacturing and earnings from bank of america bac oct 18 september industrial production september capacity utilization and earnings from goldman sachs gs johnson  johnson jnj lockheed martin lmt united airlines ual and netflix nflx oct 19 september housing starts and building permits and earnings from abbott labs abt procter  gamble pg biogen biib travelers trv tesla tsla and las vegas sands lvs oct 20 september existing home sales philadelphia fed index and earnings from alaska air alk american airlines aal att t dow dow whirlpool whr and csx csx this post contains sponsored advertising content this content is for informational purposes only and not intended to be investing advice