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Market Brief – Thursday 1/20/22

Stocks started the day higher and bolted higher in early trading as investors sought to reverse yesterday’s drop. Treasury yields fell in overnight trading and were holding their overnight decline in early trading. Initial unemployment claims rose +286k last week. Total claims rose +180k to 2.128 million. The Philly Fed Manufacturing expanded at a faster … Read more

Market Brief – Wednesday 1/19/22

Stocks started the day higher but faced selling pressure in early trading. Treasury yields fell slightly in overnight trading and were down a bit more in early trading. Mortgage applications rose +2.3% last week as purchase applications rose but refinance applications fell. Building permits rose +9.1% or 1.873 million permits in December. Housing starts rose … Read more

Market Brief – Tuesday 1/18/22

Stocks started the day sharply lower and continued lower in early trading. Treasury yields spiked higher after speculators aggressively shorted Treasuries during the thinly traded holiday session. Yields rose further in early trading. The NY Empire Manufacturing Index went from a strong expansion to a contraction in January as the index fell from 31.9 to … Read more

Banks are Buying Bonds

Inflationists are cheering the rise in lending growth as it appears to be a sign of reflation and economic growth as we head into the new year. With the Fed rapidly tapering its balance sheet, a rise in lending growth is providing validation that inflation is here to stay and that perhaps the economy is … Read more

Market Brief – Friday 1/14/22

Stocks fell in overnight trading but regained some of their losses in early trading. Treasury yields rose in overnight trading and sellers aggressively drove yields higher in early trading. Export prices fell -1.8% and import prices fell -0.2% in December. Retail sales fell -1.9% in December and slowed to +16.95% from this time last year. … Read more

Market Brief – Thursday 1/13/22

Stocks rose slightly in overnight trading but a lack of buyers in early trading had stocks in the red. Treasury yields fell in overnight trading and after sellers jammed yields higher, they fell below their opening lows in early trading. Initial unemployment claims jumped to +230k last week and total claims rose +226k to 1.948 … Read more

Market Brief – Wednesday 1/12/22

Stocks started the day higher as investors cheered a higher inflation print. Treasury yields initially started the day slightly lower before sellers were pushing yields back up on the belief that inflation will lead to higher interest rates. Mortgage applications rose +1.4% last week as purchase applications rose +2.2% and refinance applications fell -0.06%. The … Read more

Market Brief – Tuesday 1/11/22

Stocks were down slightly in overnight trading but investors were back hitting the buy button as stocks rose in early trading. Treasury yields fell slightly in overnight trading and were heading lower ahead of today’s 3-year Treasury Note auction. The NFIB Small Business Optimism Index rose slightly to 98.9 in December from 98.4 last month. … Read more

Market Brief – Monday 1/10/22

Stocks started the day sharply lower as liquidity is draining from the markets. Treasury yields started the day higher as sellers continue to bet that inflation will drive interest rates higher. Wholesale inventories rose +1.4% and wholesale trade sales rose +1.3% in November. Stocks and Treasury yields closed slightly lower on the day.

Powell is Nervous

On December 15, Federal Open Market Committee Chairman Jerome Powell announced a doubling of its balance sheet taper. While this decision was largely anticipated by the markets, as Powell recently testified before Congress the FOMC would likely end its balance sheet taper a few months early, Powell seemed a bit nervous. The Fed Chair has … Read more