Market Brief – Wednesday 5/20/20

Stocks reversed yesterday’s loss in overnight trading and continued to rise in early trading as investors are hoping to find more clues from the Fed when the Fed releases it’s minutes from its last meeting later today. Treasury yields were up slightly in early trading.

Mortgage applications fell -2.6% last week with purchase applications rising +6.4% and refinance applications falling -6.3%.

The Department of Energy reported crude oil inventories as Crude: -4.983mm (+1.151mm expected), Cushing: -5.587mm (-5.492mm expected), Gasoline: +2.830mm (-2.134mm expected), and Distillates: +3.832mm (+1.429mm expected). Crude oil rose in after-hours trading following the report. Crude oil fell following the report.

Today’s $20 billion 20-year Treasury auction was met with strong demand as foreign bidders took 60.7% of the auction and domestic bidders took 14.7% of the auction, leaving securities dealers with 24.6% of the auction. Yields fell following the auction.

Stocks closed the day higher, mostly due to their overnight gains. Treasury yields fell across the curve, with 30-year Treasury yields closing at 1.412%, just over its major resistance level of 1.4%. Crude oil managed to rebound, closing at over $33 per barrel.