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Market Brief – Wednesday 5/11/22

Stocks started the day lower and Treasury yields higher following the hotter-than-expected Consumer Price Index print for April. Stocks were up in early trading while Treasury yields were holding their overnight increase.

Mortgage applications rose +2.0% last week as purchase applications rose and refinance applications fell.

The Consumer Price Index (CPI) rose +0.3% in April and +8.3% from this time last year. Excluding food and energy, Core CPI rose +0.6% in April and +6.2% from this time last year. Real, or inflation-adjusted earnings, were flat at 0.0% in April.

The Department of Energy reported crude oil inventories as Crude: +8.487mm (-457k expected), Cushing: -587k, Gasoline: -3.607mm (-1.547mm expected), and Distillates: -913k (-1.312mm expected).

Today’s $36 billion 10-year Treasury Note auction was met with strong demand as foreign bidders took 70.3% of the auction and domestic bidders took 18.2% of the auction, leaving securities dealers with 11.5% of the auction.

Stocks and Treasury yields closed lower on the day.