Market Brief – Wednesday 1/6/20

Stocks were mixed in overnight trading with tech stocks trading lower. Investors appear pleased with the Georgia election results and were bidding stock prices higher in early trading. Treasury yields were aggressively slammed in overnight trading sending 30-year Treasury yields over 1.8% before buyers began to put a halt to the computerized selling.

ADP Nonfarm Employment missed expectations of +88k jobs as -123k jobs were lost in December.

Car sales slowed for the second month in a row to +3.72 million while truck sales rose to +12.55 million.

The Markit Composite PMI, a blend of Manufacturing and Services, slowed to 55.3. in December as both sectors expanded but at a slower rate. The Markit Services PMI came in at 54.8 for December.

Durable goods new orders rose +0.8 and factory orders rose +1.0% in November.

The Department of Energy reported crude oil inventories as Crude: -8.010mm (-2.133mm expected), Cushing: +792k, Gasoline: +4.519mm (+1.525mm expected), and Distillates: +6.390mm (+2.309mm expected). Crude oil rose following the report.

Investors ignored today’s events on Capitol Hill and bought stocks in celebration of a blue sweep. After an overnight smashing, bond prices stopped falling from their early morning lows as buyers stepped in under heavy volume to buy the dip. Thirty-year Treasury yields closed at 1.8%.