Market Brief – Wednesday 3/31/21

Stocks rose in overnight trading and extended their gains in early trading as money flowed in ahead of quarter-end. Treasury yields also dipped in overnight trading and were heading lower in early trading.

Mortgage applications fell -2.2% last week as purchase applications fell -1.5% and refinance applications fell -2.5%.

ADP Nonfarm employment rose +517k in March, mostly led by low-paying service jobs.

The Chicago PMI rose to 66.3 in March, a strong showing for the Chicago area manufacturing sector.

Pending home sales shocked experts by falling -10.6% in March, which is largely being blamed on weather and higher interest rates.

The Department of Energy reported crude oil inventories as Crude: -876k (-107k expected), Cushing: +782k, Gasoline: -1.735mm (+730k expected), and Distillates: +2.542mm (+171k expected). Crude oil rose following the report.

Stocks and Treasury yields closed higher on the day as 30-year yields once again were aggressively slammed above 2.4% before buyers regained control of the bond market. Thirty-year yields managed to close at 2.4%, which continues to be a strong level of resistance that sellers cannot sustainably break.