Market Brief – Tuesday 3/24/20

Equity futures went limit up in overnight trading as investors remain hopeful a stimulus bill and the massive amount of Fed easing will reignite the U.S. economy. Treasury yields also rose in overnight trading but were slowly falling in early trading.

Redbook same-store weekly retail sales rose +1.7% over last month and a whopping +9.1% from this time last year as consumers cleared stores out of fears of a food shortage due to the Coronavirus.

The Markit preliminary Composite PMI for March came in at 40.5, preliminary Manufacturing PMI at 49.2, and the preliminary Services PMI at 39.1.

New home sales fell -4.4% in February but are likely to fall considerably next month.

The Richmond Manufacturing Index rose out of negative territory to 2 in March. Shipments skyrocketed to 13 from 1 and the services index fell to 1 from 26 in March. Most of the turnaround had to do with rising delivery times, which is normally a sign of demand, but not when supply chains are being shutdown.

Stocks rallied as the end-of-quarter rebalances begin. Treasury yields rose slightly on the day but remain poised to fall as the Fed continues to buy $125 billion of Treasury and Mortgage-Backed Securities each day. Except for Treasuries, all sectors in the market showed strong gains.

The American Petroleum Institute reported crude oil inventories as Crude: -1.247mm (+2.5mm expected), Cushing: +1.066mm, Gasoline: -2.622mm, Distillates: -1.901mm.