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Market Brief – Tuesday 7/13/21

Stocks dipped in overnight trading but traders were not deterred as they hit the bid at the opening bell to take stock prices higher. Treasury yields fell in overnight trading ahead of the June CPI print and remained lower in early trading much to the surprise of many investors.

The National Federation of Independent Business Optimism index rose from 99.6 to 102.5 in June, indicating small businesses were more optimistic in June.

The Consumer Price Index rose +0.9% in June and +5.4% from this time last year. Excluding food and energy, Core CPI rose +0.9% and +4.5% from this time last year. Real, or inflation-adjusted earnings, fell -0.9% in June.

Today’s $24 billion 30-year Treasury Bond auction was met with decent demand as foreign bidders took 61.1% of the auction and domestic bidders took 16.6% of the auction, leaving securities dealers with 22.3% or $5.348 billion. Treasury yields rose following the auction.

Today’s stock rally was short-lived as stocks closed lower on the day. Treasury yields closed higher on the day after sellers drove yields up strongly before buyers arrived to put an end to the selling spree.