fbpx

Market Brief – Thursday 10/22/20

Stocks and Treasury yields were flat in overnight trading on what is to be believed the final day of stimulus negotiations before they are too late. Stocks were mixed in early trading as reports a deal is almost done boosted spirits while Treasury yields were higher in early trading.

Initial jobless claims fell below 800k for the first time since the pandemic started with initial claims coming in at +787k last week. The prior week was revised lower but the average has been stuck at 800k claims per week for several months.

Existing home sales rose +9.4% in September against an expectations of a +5.0% increase.

Stocks rallied on stimulus optimism even though there was no news of stimulus to drive the tape. Meanwhile investors continue to aggressively sell Treasuries as they are certain inflation will finally arrive.