Market Brief – Monday 9/9/19

Stocks and Treasury yields started the day slightly higher as the news reported that markets are rising on hopes for additional monetary stimulus. Markets make the news, and this morning’s rise was more about a continuation of last week’s rally than anything else.

China exports are down -1% YoY, with exports to the U.S. down -16% YoY. China imports are down -5.6% YoY, with imports to the U.S. down -23.5% YoY. China car sales are down -9.6% in August versus -5.3% for July.

Stocks were mixed in light trading with large-cap stocks down slightly and small-cap stocks up. Oil and gas producing stocks dominated the day as the shot up to their 50-day moving average on hopes of higher oil prices. Gold and silver mining stocks were down today as the gold rally appears to be overdone and ripe for a correction.

Treasury yields were higher today as bonds sold off in an effort to flush out the weak players. Those looking to buy bonds should keep an eye on this drop in prices for an entry point. After being dumped in overnight trading, agricultural commodities fought back to close flat on the day.