Market Brief – Tuesday 7/28/20

Stocks started the day higher and Treasury yields lower as investors on both sides of the market are hoping tomorrow’s FOMC press conference will be favorable for their positions.

Redbook same-store weekly retail sales rose +1.1% last week but dipped further into contraction at -8.7% from this time last year.

The Conference Board Consumer Confidence survey slid from 98.3 last month to 92.6 showing consumers are less confident.

Today’s $44 billion 7-year Treasury Note auction was met with strong demand as foreign bidders took 63.9% of the auction and domestic bidders took 16.8% of the auction, leaving securities dealers with 19.3% of the auction. Yields fell following the auction.

Stocks turned in lower late trading to close in the red. Treasury yields were boosted by today’s stellar Treasury auction and closed at their lowest level since April. The U.S. Dollar is trying to bottom after being in free fall since March.

The American Petroleum Institute reported crude oil inventories as Crude: -6.829mm (-1.2mm expected), Cushing: +1.144mm, Gasoline: +1.083mm (-2.0mm expected), Distillates: +187k. Crude oil was unchanged in after-hours trading following the report.