Market Brief – Thursday 1/21/21

Stocks were flat in overnight trading and rose very slightly in early trading as yesterday’s euphoria to buy stocks at the all-time highs appears to have worn off. Treasury yields were up slightly in overnight trading and were slammed higher in pre-market trading as computer algorithms interpreted today’s economic data as inflationary. Despite giving back three days of declines, yields were falling in early trading as buyers were slowly buying bonds.

Initial claims fell -26k last week as +900k Americans filed for unemployment benefits last week. Total claims, including all forms of Pandemic Unemployment Assistance, declined -2.412 million to 15.944 million.

Housing starts rose +1.699 million or +5.8% in December as home builders are extremely optimistic due to an unusually low supply of homes on the market.

The Philly Fed Manufacturing Index showed a continued expansion in the Philadelphia area as general activity, new orders, and shipments increase in January for the eighth consecutive month.

Stocks were mostly flat on the day while Treasury yields held their pre-market ramp.