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Market Brief – Friday 9/25/20

Stocks rose in overnight trading and investors hit the bid in early trading to send stocks higher as they hope this is the bottom of a dip in stock prices. Treasury yields fell slightly in overnight trading and were holding their overnight drop in early trading. The dollar rose in overnight trading and was heading higher in early trading.

Durable goods new orders rose +0.4% in August and fell to -6.3% from this time last year suggesting the economic recovery may have peaked. Excluding food and energy, core durable goods new orders rose +0.4% in August, excluding defense, durable goods new orders rose +0.7% in August, and non-defense excluding air durable goods new orders rose +1.8% in August.

Stocks rallied on stimulus hopes as Congress is set to meet over the weekend. Treasury yields rose slightly on the news but closed flat on the day as the bond market did not buying the excitement as the prior stimulus bills did not prove to be inflationary.