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Market Brief – Thursday 7/28/22

Stocks started the day a bit lower and Treasury yields a bit higher after global investors take a breath from yesterday’s big moves.

Initial unemployment claims fell -5k last week to +256k. Total claims surged by +123.4k last week to 1.476 million indicating unemployed workers are struggling to find new jobs.

Preliminary second-quarter GDP Growth contracted at -0.9% as the U.S. economy entered a technical recession which is two consecutive quarters of negative growth.

Today’s $38 billion 7-year Treasury Note auction was met with strong demand as foreign bidders took 70.9% of the auction and domestic bidders took 18.4% of the auction, leaving securities dealers with 10.6% of the auction.

Stocks ripped higher for the second day in a row as investors remain giddy about tighter monetary policy. Treasury yields closed lower, wiping out most of yesterday’s post-FOMC gains.