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Market Brief – Friday 3/20/20

Stocks were mixed in overnight trading but rose in early trading as today is a large options expiration day. Stocks fell after New York Governor Cuomo told all workers to stay home. Treasury yields fell in overnight trading and continued to fall in early trading. Bank of America expects unemployment claims to jump to 3 million next week, which is beyond belief.

Existing home sales surged +6.5% in February, but this number is expected to crash in March as buyers are likely staying at home due to the Coronavirus.

The New York Fed is purchasing an unprecedented $75 billion in Treasury securities and $32 billion in Mortgage-Backed Securities as they attempt to bring yields down and supply liquidity to the financial system.

Following this morning’s Coronavirus press conference, stocks and Treasury yields fell. Except for foreign stocks, which traded higher last night and Treasury bonds, every other sector closed lower for the day. Even crude oil closed near its weekly lows after the rally in early trading. It was a day of liquidations as investors aren’t wanting to hold risk assets over the weekend.