Stocks rose in overnight trading as investors shrug off fears that China’s real estate market will face a global meltdown. Treasury yields were flat ahead of today’s FOMC press conference where investors believe the Fed will announce a balance sheet taper beginning in November.
Mortgage applications rose +4.9% last week as purchase applications rose +2.2% and refinance applications rose +6.5%.
Existing home sales fell -2.0% in August and 1.5% from this time last year to 5.88 million units.
The Department of Energy reported crude oil inventories as Crude: -3.481mm (-2.440mm expected), Cushing: -1.476mm, Gasoline: +3.475mm (-1.067mm expected), and Distillates: -2.555mm (-1.190mm expected). Crude oil fell following the report.
The Federal Open Market Committee did not make any changes to monetary policy however they did suggest that should the labor market continue to recover that a balance sheet taper would be appropriate next year.
Stocks rallied on the day to close higher while Treasury yields fell to close lower on the day.