Market Brief – Tuesday 11/24/20

Stocks rallied in overnight trading on news President Trump will allow Biden’s transition team to get to work and on hopes, future Treasury Secretary Yell will open the fiscal floodgates by working with the Fed. Stocks and risk assets continued their overnight rally in early trading. Treasury yields fell in overnight trading on the same news and trading slightly above their overnight levels in early trading.

Redbook same-store weekly brick-and-mortar retail sales fell -0.5% last week and -2.8% from this time last year.

Home prices rose +1.7% in September and +9.1% from this time last year as rising home prices continue to price out first-time buyers.

The Conference Board’s Consumer Confidence Survey decline in November to 96.1 from 101.4.

The Richmond Fed Manufacturing Index expanding in November but at a slower pace than October.

Today’s $56 billion 7-year Treasury Note auction was met with decent demand as foreign bidders took 65.4% of the auction and domestic bidders took 15.1% of the auction, leaving securities dealers with 19.5% or $10.907 billion. Treasury yields fell following the auction.

Stocks closed higher on the day as investors remain bullish despite the market cap to GDP of the S&P 500 now exceeding its dot-com bubble peak. Treasury yields were battered higher all day with 30-year Treasury yields closing just over 1.6%.

The American Petroleum Institute reported crude oil inventories as Crude: +3.8mm (-300k expected), Cushing: -1.4mm, Gasoline: +1.3mm, and Distillates: -1.8mm. Crude oil fell in after-hours trading following the report.