Market Brief – Tuesday 9/22/20

Stocks rose and Treasury yields fell in overnight trading. Stocks were unable to hold their overnight gains in early trading, while investors continued to dump Treasuries in early trading as they have been for the past week.

Redbook same-store weekly brick-and-mortar retail sales fell -0.9% from this time last week and rose +1.5% from this time last year.

Existing home sales rose +2.4% in August matching expectations and +2.4% from this time last year as sales of million-dollar homes surged.

The Richmond Fed Manufacturing Index showed continued expansion in September as it rose from 18 in August to 21 in September despite slowing shipments. The Richmond Fed Services Index showed continued expansion in September as it rose from 2 in August to 6 in September.

Today’s $52 billion 2-year Treasury Note auction was met with weak demand as foreign bidders took 52.5% of the auction and domestic bidders took 14.1% of the auction, leaving securities dealers with 33.4% of the auction or $17.339 billion. Treasury yields fell following the auction.

Stocks shrugged off their morning lows as investors were back in a buying mood which sent all of the major equity indices higher on the day. Treasury yields were mostly flat on the day while the trade-weighted dollar flirted with its key overhead resistance level of $94.

The American Petroleum Institute reported crude oil inventories as Crude: +691k (-4.0mm expected), Cushing: +298k, Gasoline: -7.735mm (-1.9mm expected), and Distillates: -2.104mm (+1.2mm expected). Crude oil was flat in after-hours trading following the report.