Market Brief – Tuesday 6/9/20

Oddly, stocks started the day lower after falling in overnight trading, to give U.S. investors a rare opportunity to buy the overnight dip, which they did. Treasury yields also fell in overnight trading and were holding most of their overnight move in early trading.

Redbook same-store weekly retail sales fell -3.2% from this time last month and fell -9.7% from this time last year as consumers continue to pay down debts and hoard cash rather than spending it.

The Job Openings and Labor Turnover Survey (JOLTS) showed the number of job openings in April plunged to 5.046 million from 6.011 million in March. Unlike the recent nonfarm payroll report, the JOLTS indicates employers are not hiring and it is unlikely there will be a rapid economic recovery.

Today’s 10-year $29 billion Treasury Note auction was met with weak foreign demand as foreign bidders took 56.7% of the auction and domestic bidders took 11.8% of the auction, leaving securities dealers with 31.5% of the auction. Yields rose slightly after the auction.

Aside from the tech-heavy Nasdaq, stocks closed lower on the day. Ahead of tomorrow’s FOMC press conference, Treasury yields closed lower on the day.

The American Petroleum Institute report crude oil inventories as Crude: +8.42mm (-1.2mm expected), Cushing: -2.285mm, Gasoline: -2.913mm (-200k expected), and Distillates: +4.271mm (+2.9mm expected). Crude oil fell in after-hours trading following the report.