Market Brief – Wednesday 7/27/22

Stocks rallied in overnight trading following Google’s earnings report which sent its stock higher. Treasury yields fell slightly ahead of today’s FOMC policy statement.

Mortgage applications fell -1.8% with both purchase and refinance applications falling.

Durable goods new orders rose +1.9%, excluding food and energy, core durable goods new orders rose +0.3%, durables excluding defense rose +0.4%, and non-defense durable goods new orders excluding aircraft rose +0.5% in June.

The trade deficit shrunk to -$98.18 billion in June.

Retail inventories, excluding autos, rose +1.6% and preliminary wholesale inventories rose +1.9% in June.

Pending home sales fell -8.6% in June.

The Department of Energy reported crude oil inventories as Crude: -292k (-1.037mm expected), Cushing: +751k, Gasoline: -3.304mm (-857k expected), and Distillates: +784k (+500k expected).

The Federal Open Market Committee decided to raise the Federal Funds Rate by 0.75% as inflation remains too hot for the Fed.

Stocks ripped higher following the FOMC meeting to close significantly higher on the day. Treasury yields were mixed following the press release only to close sharply higher as investors continue to bet on higher rates.