Market Brief – Thursday 6/4/20

Stocks were mixed in early trading as they were undecided if they will go higher or lower. After holding in overnight trading, Treasury yields were once again slammed higher in the thinly traded pre-market, suggesting a computer algorithm was dumping Treasuries ahead of the cash open.

Challenger announced job cuts came in at 397.016k as the second wave of layoffs appears to be affecting higher-wage managerial and supervisory positions.

Initial jobless claims came in at 1.877 million, down slightly from the prior week. The four-week moving average for jobless claims slowed to 2.284 million. Continuing jobless claims rose slightly to 21.487 million despite states beginning to reopen their economies.

Exports fell in April to $151.3 billion, down 20.5% or $38.9 billion from the prior month. Imports fell in April to $200.7 billion, down 13.7% or $31.8 billion from the prior month. Declining exports and imports confirm the U.S. economy is shrinking despite the massive stimulus programs.

Stocks closed down slightly and Treasury yields continued higher as sellers slammed yields higher for the third week in a row trying in an attempt to force inflation on a deflating economy.