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Market Brief – Monday 5/4/20

Stocks fell in early trading after investors heard Warren Buffet has been selling stocks and does not see any opportunities in the markets to reinvest. Berkshire Hathaway currently holds over $130 billion in cash. Treasury yields rose slightly in early trading after Apple announced it will finance its recently announced $50 billion share repurchase program.

Durable goods new orders fell -14.7% in March and -14.7% from this time last year. Excluding defense and non-aircraft spending, durable goods new orders fell -6.3% in March from this time last year as a sign consumer demand is falling. Factory orders fell -10.3% in March and -11.4 from this time last year. Excluding transportation, factory orders fell -3.7% in March.

Stocks rallied back against their overnight drop to close in positive territory on a day of light trading. Treasury yields closed higher on the day and for the third trading day in a row, 30-year Treasury yields held resistance at 1.3%. The key support level for 30-year Treasury yields is 1.2%. Crude oil also closed higher despite a report there is now 375 million barrels of oil floating at sea.