Stocks fell in overnight trading and investors were quick to buy the dip in early trading. Treasury yields fell in overnight trading and were holding their overnight decline in early trading.
Initial jobless claims missed expectations as 742k Americans filed for unemployment benefits last week. Total unemployment claims, including all forms of pandemic assistance, fell to 20.319 million from 21.160 million the prior week. Unemployment claims are expected to increase as states announce new restrictions and lockdown measures.
The Philly Fed Manufacturing Index showed an expansion in manufacturing activity for November but at a slower pace than October. Business conditions, CAPEX spending, employment, and new orders increased at a slower rate while prices paid increased at a faster rate than last month.
Existing home sales rose +4.3% increase in October and +26.6% from this time last year crushing expectations. The median home price rose +15.5% over last year to $313,000.
Stocks rallied on news stimulus talks will resume which also pushed Treasury yields back off their lows for the day. Stocks closed higher and Treasury yields lower on the day.