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Market Brief – Wednesday 5/18/22

Stocks started the day sharply lower and Treasury yields slightly. Stocks and Treasury yields were headed lower in early trading.

Mortgage applications fell -11% last week as both purchase and refinance applications fell.

Building Permits fell -3.2% and Housing Starts fell -0.2% in April.

The Department of Energy reported crude oil inventories as Crude:  -3.394mm (+1.383mm expected), Cushing: -2.403mm, Gasoline: -4.779mm (-1.333mm expected), and Distillates: +1.235mm (-800k).

Today’s $17 billion 20-year Treasury Bond auction was met with strong demand as foreign bidders took 70.6% of the auction and domestic bidders took 16.4% of the auction, leaving securities dealers with 13.0% of the auction.

Stocks were crushed today as persistent selling drove prices lower. Treasury yields also fell to close lower on the day.