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Market Brief – Wednesday 11/18/20

Stocks and Treasury yields were mostly flat in overnight trading and had not moved much in early trading.

Mortgage applications fell -0.3% last week with purchase applications rising +3.5% and refinance applications falling -1.8%.

Housing starts rose +4.9% and building permits were unchanged in October as homebuilders are the most optimistic they have been in decades.

The Department of Energy reported crude oil inventories as Crude: +768k (+16.50mm expected), Cushing: +1.200mm (+2.154mm expected), Gasoline: +2.611mm (+87k expected), and Distillates: -5.217mm (-1.457mm expected). Crude oil fell following the report.

Today’s $27 billion 20-year Treasury Bond auction was met with decent demand as foreign bidders took 61.2% of the auction and domestic bidders took 15.3% of the auction, leaving securities dealers with 23.5% of the auction or $6.341 billion. Treasury yields rose following the auction.

After trading sideways most of the day, stocks sold off in the last hour of trading and closed lower on the day. After being slammed higher following the 20-year Treasury auction, Treasury yields fell and closed lower on the day.