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Market Brief – Tuesday 9/9/20

Stocks rallied in overnight trading and continued higher in early trading as investors rushed to catch a falling knife by buying the dip. Treasury yields were flat in overnight trading and rose slightly ahead of today’s 10-year Treasury Note auction. After five straight days of gains, the dollar ran into sellers and was lower in early trading.

Redbook same-store weekly brick-and-mortar retail sales fell -1.0% last week and -0.1% from this time last year as the rebound in retail sales appears to be grinding to a halt.

The Job Openings and Labor Turnover Survey (JOLTS) beat expectations with 6.618 million job openings in August despite hirings falling by 1.183 million to 5.787 million.

Today’s $35 billion 10-year Treasury Note auction was met with weak demand as foreign bidders took 58.3% of the auction and domestic bidders took 14.6% of the auction, leaving securities dealers with 27.1% of the auction. Treasury yields rose following the auction.

Stocks regained some of yesterday’s losses but were unable to hold on to their intraday highs as sellers emerged in the last thirty minutes of trading. Treasury yields also closed higher but below their intraday highs as buyers came in during the last hour of trading. The dollar also closed lower on the day.