Market Brief – Tuesday 9/28/21

Stocks started the day lower and Treasury yields even higher as fears Congress will not raise the debt ceiling in time rattled the markets. Stocks continued to slide in early trading while Treasury yields fell from their opening highs.

The trade deficit widened to -87.60 billion in August, retail inventories excluding autos rose +0.6% in August and preliminary wholesale inventories rose +1.2% in August.

Home prices rose +1.4% in July and +19.2% from this time last year.

The Conference Board’s Consumer Confidence survey crashed in September from 115.2 to 109.3.

The Richmond Fed Manufacturing Index fell from 9 to -3 in September indicating a slight contraction in the manufacturing sector. The Richmond Fed Services Index fell from 15 to -3 in September indicating a slight contraction in the services sector.

Today’s $62 billion 7-year Treasury Note auction was met with weak demand as foreign bidders took 60.1% of the auction and domestic bidders took 20.9% of the auction, leaving securities dealers with 19.0% or $11.771 billion. Treasury yields rose slightly following the auction.

Stocks closed strongly lower on the day and Treasury yields higher for the fourth day in a row.