Market Brief – Wednesday 7/14/21

Stocks rose in overnight trading as investors continue to bet on the Fed continuing to keep monetary policy loose. Treasury yields fell in overnight trading and extended their decline in early trading as 30-year Treasury yields dipped below 2.0%.

Mortgage applications surged +16.0% last week as purchase applications rose +8.3% and refinance applications rose +20.4%.

The Producer Price Index rose +1.0% in June and +7.3% from this time last year. Excluding food and energy, Core PPI rose +1.0% and +5.6% from this time last year.

The Department of Energy reported crude oil inventories as Crude: -7.897mm ( -4.359mm expected), Cushing: -1.589mm, Gasoline: +1.039mm (-1.786mm expected), and Distillates: +3.657mm (+877k expected). Crude oil fell following the report.

Stocks were mixed on the day with the Russell 2000 closing lower which suggests large-cap equities are soon to follow. After reaching 2.5% on 30-year Treasury yields yesterday, a rapid reversal started in overnight trading and continued into the closing bell as 30-year Treasury yields closed below 2.0%.