Wednesday, September 28, 2022Ahead of the opening bell this Hump Day morning, market futures are in modestly positive territory, following a reversal of monetary policy announced early the morning by the Bank of England (BoE). The Dow currently looks to open +100 points, with the S&P 500 and the Nasdaq up +10 and +15 points, respectively. We started off the trading session in the green yesterday, too, but wound up mostly giving it all back. Fingers crossed for a better result today.After a recent tax cut policy was announced in Great Britain, shortly after the election of a new Prime Minister, Liz Truss, we saw the value of the British pound tumble and repercussions in the British bond market (known as “gilts”), which was speedily putting the UK at odds with most of the rest of the major economic powers across the globe.Today, we see a “significant repricing” of UK and global assets from the BoE, extending bond purchases and delaying the sell-off of a monthly $85 billion (U.S.-dollar equivalent) for another month. This has caused the 30-year, 10-year and 2-year gilts to spike by their sharpest rise in 65 years, binging British bond yields to levels not seen since 2008. Thus begins a new push-pull process in monetary policy to our ally across the pond.We also saw a new Advance Trade in Goods report out for August this morning, with a deficit of -$87.3 billion — its fifth-straight month of narrowing the deficit, from a more deeply revised -$90.2 billion the previous month. This is also thankfully far removed — and going in the right direction — from the abysmal -$125 billion+ we saw back in March of this year. It’s also the lowest print since October of 2021.Both Imports and Exports were both down last month, by -$1.7% and -0.9%, respectively, We also saw a hefty increase in Shipments, led by an +8% rise in consumer goods. There is still a ways to go before we’re back to the leveling-off period of the 20-teens, which saw Trade in Goods numbers steadily around -$6 billion. This is not one of those direct-correlation to domestic inflation metrics we see from other data releases, but a shrinking trade deficit does have obvious economic benefits overall.After today’s open, we’ll get Pending Home Sales results for August, with expectations coming down -1.4% following -1.0% last month. We’ve seen elsewhere ample evidence of erosion in homebuying demands — although August New Home Sales grew much higher than expected in yesterday’s report. We feel we may be seeing the last gasp of major homebuying activity before the real dormant period begins, which would send home prices down farther and continue to work down inflation aspects.Questions or comments about this article and/or its author? Click here>> Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report