Market Brief – Wednesday 12/30/20

Stocks rose slightly in overnight trading as the dollar tumbled to its 2-year low. Treasury yields rose slightly in overnight trading. Both stocks and yields were holding their overnight moves in early trading.

The trade deficit increased to $84.82 billion in November, the largest on record.

The Chicago PMI rose slightly to 59.5 in December showing a continued expansion in the Chicagoland factory sector.

Pending home sales fell -2.6% in November and slowed to +16.0% from this time last year.

The Department of Energy reported crude oil inventories as Crude: -6.056mm (-2.583mm expected), Cushing: +27k, Gasoline: -1.192mm (+1.662mm expected), and Distillates: +3.095mm (+529k expected). Crude oil rose following the report.

Stocks closed slightly higher on the day but were unable to hold onto all of their overnight gains. Treasury yields closed lower on the day as buyers continue to bid yields despite persistent overnight selling.