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Market Brief – Tuesday 10/19/21

Stocks rose in overnight trading again and headed higher as investors are confident this rally will cause prices to reach new all-time highs. Treasury yields rose in overnight trading and were slammed higher in early trading. Building permits fell -7.7% and housing starts -1.6% in September. Stocks and Treasury yields closed higher on the day.

Market Brief – Monday 10/18/21

Stocks dipped in overnight trading but quickly found buyers in early trading. Stocks were unchanged in early trading. Treasury yields rose slightly in overnight trading and were initially pushed higher until reversing to head lower in early trading. Industrial production fell -1.3% in September and slowed to +4.6% from this time last year. Manufacturing production … Read more

The Dollar Will Break Inflation

The headline inflation rate, or Consumer Price Index rose +5.3% over the past twelve months in August as the annualized rate of change in the index appears to be peaking. Investors and consumers are convinced inflation will continue to rise even higher much like it did in the 1970s. Few realize, the dollar is slowly … Read more

Market Brief – Friday 10/15/21

Stocks rose in overnight trading then raced higher in early trading. Treasury yields also rose in overnight trading and went higher in early trading. Retail sales rose +0.7% in September and slowed to +13.95% from this time last year. Excluding food and energy, core retail sales rose +0.8% in September. The NY Empire State Manufacturing … Read more

Market Brief – Thursday 10/14/21

Stocks shot higher in overnight trading as investors cheered strong bank earnings and headed higher in early trading. Treasury yields were flat in overnight trading and after a brief move higher, were slowly moving lower. Initial unemployment claims fell to 293k but remain 50% higher than normal. Total claims, including all forms of Pandemic Unemployment … Read more

Market Brief – Wednesday 10/13/21

Stocks started the day slightly lower and after a brief move higher, selling sent prices lower in early trading. Treasury yields fell in overnight trading and continued lower ahead of today’s 30-year Treasury Bond auction. Mortgage applications rose +0.2% last week as purchase applications rose +1.5% and refinance applications rose +0.5%. The Consumer Price Index … Read more

Market Brief – Tuesday 10/12/21

Stocks started the day slightly lower and were indecisive in early trading. Treasury yields fell in overnight trading but sellers were pushing back ahead of today’s auctions. The Job Openings and Labor Turnover Survey (JOLTS) showed a slight decrease in job openings in August to 10.439 million which is near the all-time high set the … Read more

Market Brief – Monday 10/11/21

Stocks dipped in overnight trading but buyers quickly sent prices higher after the opening bell. With the bond market is closed today, yields rose slightly in overnight trading. Stocks close lower on the day and Treasury yields slightly higher.

Taper Tantrum

Two weeks ago, Fed Chair Powell suggested during the Federal Open Market Committee (FOMC) press conference the FOMC board was very close to tapering its purchases of Treasury and Mortgage-Backed Securities. Initially, bond prices rallied on the news, then were slammed lower over the following two days as investors changed their view on how a … Read more

Market Brief – Friday 10/8/21

Stocks were flat in overnight trading on a weaker-than-expected Nonfarm payroll report. Treasury yields were volatile following the report and started the day higher. September Nonfarm payrolls missed expectations with a +194k print. Government payrolls fell -123k, manufacturing payrolls rose +26k, and private nonfarm payrolls rose +317k. Hourly average earnings rose +0.6% in September and … Read more