Market Brief – Monday 8/31/20

Stocks rose in overnight trading but gave up their overnight gains in pre-market trading after Fed Vice Chair Clarida stated yield caps were not warranted and difficult to implement. Stocks and Treasury yields headed lower in early trading. Except for the tech-heavy Nasdaq-100, mostly led by Apple and Tesla, stocks closed lower in another day … Read more

What is Going on With Bonds?!?

Earlier this month long-term Treasury bonds were on the cusp of a major breakout which would have sent prices shooting higher into their final leg of the Bull market in bonds that began back in 2016. Treasury Bears, who are betting on higher interest rates and inflation, had other ideas and have been aggressively selling … Read more

Market Brief – Friday 8/28/20

Stocks were quiet in overnight trading and after a brief move lower in early trading, buyers eagerly jumped in at all-time highs to bid stock prices even higher. Treasury yields fell slightly in overnight trading from yesterday’s rout and rose in early trading as investors attempt to press yields higher. The Personal Consumption Expenditure (PCE) … Read more

Market Brief – Thursday 8/27/20

Stocks and Treasury yields were quiet in overnight trading ahead of Fed Chair Powell’s speech from Jackson Hole. As expected, Powell announced the Fed would let inflation run over 2%, provided it can get over 2%. Investors bought into Powell’s rhetoric and dumped bonds to buy stocks in hopes inflation will boost corporate profits to … Read more

Market Brief – Wednesday 8/26/20

Stocks were flat in overnight trading but were clawing their way higher in early trading as reports show nearly everyone is fully invested in stocks with very few investors betting or hedging against a move to the downside. Treasury yields rose in overnight trading as sellers desperately need to push yields higher and after rising … Read more

Market Brief – Tuesday 8/25/20

Stocks rose in overnight trading but opened flat after the housing price data was released. Stocks were mixed in early trading. Meanwhile, Treasury yields rose in overnight trading as investors are nervous Fed Chair Powell will announce some new inflationary targeting on Thursday at the Fed’s Jackson Hole meeting even though the Fed does not … Read more

Market Brief – Monday 8/24/20

President Trump sent overnight equity futures higher with his well-time press conference on Sunday that coincided with the opening of the futures market. Despite no economic news to drive stocks in overnight and early trading, investors were still eager to play chase. The bond market did not confirm the enthusiasm as Treasury yields fell in … Read more

Market Brief – Friday 8/21/20

Stocks were up slightly, and Treasury yields were lower in overnight trading. Meanwhile, the U.S. Dollar rose in overnight trading as it continues to hold its August lows. The preliminary Markit Composite PMI expanded slightly to 54.8 with the Manufacturing PMI expanding slightly to 53.6 and Services PMI expanding slightly to 54.8. According to Markit, … Read more

Market Brief – Thursday 8/20/20

After falling in overnight trading, U.S. investors were once again eager to buy the dip in stocks in early trading which pushed prices back into the green. After getting slammed higher yesterday, Treasury yields reversed yesterday’s gain in overnight trading and continued to fall in overnight trading. Initial jobless claims missed expectations as 1.106 million … Read more

Market Brief – Wednesday 8/19/20

Stocks started the day slightly higher and Treasury yields lower after yields fell in overnight trading. The dollar held in overnight trading and found buyers as it is deeply oversold. Investors have been dumping dollars over inflation fears however they will be paying a premium to get them back as disinflation is showing up in … Read more