Market Brief – Wednesday 1/13/21

Stocks were flat in overnight trading while Treasury yields fell slightly. Stocks were mixed in early trading while Treasury yields continued to fall from their overnight decline.

Mortgage applications rose +16.7% last week as purchase applications rose +8.0% and refinance applications rose +20.1%.

The Consumer Price Index (CPI) rose +0.4% in December, mostly due to rising energy costs, and +1.4% from this time last year. Excluding food and energy, Core CPI rose +0.1% in December and was flat at +1.6% from this time last year. Real, or inflation-adjusted earnings rose +0.1% in December.

The Department of Energy reported crude oil inventories as Crude: -3.247mm (-2.266mm expected), Cushing: -1.975mm, Gasoline: +4.395mm (+2.695mm expected), and Distillates: +4.786mm (+2.671mm expected). Crude oil fell following the report.

Today’s 30-year $24 billion Treasury Bond auction was met with strong demand as foreign bidders took 68.6% of the auction and domestic bidders 14.2% of the auction, leaving securities dealers with 17.2% or $3.397 billion. Treasury yields fell following the auction.

Stocks closed slightly higher on the day after being unable to hold on to their intra-day highs. Treasury yields closed lower but were also unable to hold their intra-day lows.