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Market Brief – Wednesday 8/10/22

Stocks surged higher in premarket trading following the Consumer Price Index print for July. Treasury yields initially fell following the CPI release, then rose slightly before the opening bell.

Mortgage applications rose +0.2% last week as purchase applications fell and refinance applications rose.

The Consumer Price Index (CPI) was unchanged in July and rose +8.5% from this time last year. Excluding food and energy, Core CPI rose +0.3% in July and +5.9% from this time last year. Real or inflation-adjusted earnings rose +0.5%.

Wholesale inventories rose +1.8% and wholesale trade sales rose +1.8% in June.

The Department of Energy reported crude oil inventories as Crude: +5.458mm (+73k expected), Cushing: +723k, Gasoline: -4.978mm (-633k expected), and Distillates: +2.166mm (-667k expected).

Today’s $35 billion 10-year Treasury Note auction was met with strong demand as foreign bidders took 74.5% of the auction and domestic bidders took 15.6% of the auction, leaving securities dealers with 9.9% of the auction.

Stocks held their premarket surge to close sharply higher on the day. Treasury yields closed higher on the day as sellers remain adamant that yields must go higher.