Stocks fell in overnight trading after reports of rising case counts in Asia and after a worse-than-expected second-quarter GDP print for Germany. Treasury yields crumbled on the news and are threatening to break a critical technical support level that if broken would have yields quickly revisiting their all-time lows.
Initial jobless claims beat expectations with 1.434 million Americans filing for unemployment benefits. The four-week moving average for initial claims rose to 1.368 million and continuing claims rose to 17.018 million.
Preliminary second-quarter GDP fell -32.9% with the preliminary GPD Price Index falling -2.1% and GDP sales falling -29.3%. Personal Consumption Expenditure Prices fell -1.9% in the second quarter and Core PCE Prices fell -1.10% in the second quarter. Real, or inflation-adjusted, Consumer Spending fell -34.6% in the second quarter.
Stocks closed lower but not after buyers stepped in to push prices up from their early morning lows. Treasury yields held their overnight lows as they look to make a major move lower next month.