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Market Brief – Tuesday 7/26/22

Stocks started the day lower after Walmart disappointed investors and projected things are likely to get worse. Treasury yields fell in overnight trading as the FOMC begins its two-day policy meeting.

Home prices rose +1.4% in May and +18.3% from this time last year. The S&P/CS HIS Composite, which also tracks home prices, rose +1.5% in May and +20.5% from this time last year.

Consumer confidence continued its downward slide as the Conference Board’s Consumer Confidence survey fell to 95.7 in July from 98.4 last month.

New home sales plunged -8.1% in June to 590k units.

The Richmond Manufacturing Index improved to zero in July from -9 the month before. The Richmond Services Index fell to -13 in July from zero the prior month.

Today’s $46 billion 5-year Treasury Note auction was met with strong demand as foreign bidders took 66.4% of the auction and domestic bidders took 16.8% of the auction, leaving securities dealers with 16.8% of the auction.

Stocks closed lower as sellers dominated the day and Treasury yields closed slightly lower after sellers aggressively sold the overnight gap lower in yields.