Market Brief – Wednesday 1/5/22

Stocks started the day lower and were holding their overnight decline in early trading. Treasury yields fell in overnight trading but were jammed higher in early trading as traders bet on higher interest rates.

Mortgage applications fell -5.6% last week as purchase applications fell -10.2% and refinance applications fell -2.5%.

ADP Nonfarm Employment beat expectations with +807k jobs in December.

The Markit Services PMI showed the services sector expanded at a slightly slower rate in December.

All car sales fell to 2.61 million units and all truck sales fell to 9.82 million units.

The Department of Energy reported crude oil inventories as Crude: -2.144mm (-3.283mm expected), Cushing: +2.577mm, Gasoline: +10.128mm (+1.775mm expected), and Distillates: +4.418mm (+1.525mm expected).

Stocks closed sharply lower and Treasury yields closed back near year yesterday’s highs.