5 things to know before the stock market opens Friday

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Dow to rise; Fed chief Jerome Powell speaks; Fed presidents offer their views; bonds stable; and Larry Kudlow adds a tax twist

Treasury yieldsFriday morning, a day after the 10-year yield inverted for the third time in a little more than a week, briefly trading below that of the 2-year. That spread flip-flop has happened before every recession in the last half-century. But it's taken on average nearly two years for the downturn to materialize. In addition to U.S. rate guidance, traders will be looking for Powell's view on inversions and negative rates across Europe and in Japan.Larry Kudlow, director of the U.S.

National Economic Council, speaks during a Bloomberg Television interview outside the White House in Washington, D.C., U.S., on Friday, Aug. 2, 2019.that the president could put forward a tax cut before the 2020 election. Kudlow's remarks in a Thursday interview added another twist, in a week of mixed messaging from the White House about possible tax cuts and other proposals to stimulate the economy.

 

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Stocks are jumping as traders bet Fed Chair Jerome Powell will signal more interest-rate cuts in his speech today'To say that the stakes are high for the meeting is an understatement.'
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