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Market Brief – Friday 1/7/22

Stocks were flat in overnight trading and Treasury yields were slightly higher. Stocks turned lower in early trading and Treasury yields continued higher despite a week payroll report. Nonfarm Payrolls for December missed expectations with +199k jobs created. Average hourly earnings rose +0.6% in December and +4.7% from this time last year. The average weekly … Read more

Market Brief – Thursday 1/6/22

Stocks fell in overnight trading but were trying to fight higher in early trading. Treasury yields rose again in overnight trading and were slightly higher in early trading. Challenger job cuts rose 19.052k in December. Initial unemployment claims rose +207k last week and total claims fell -199k to 1.722 million. Exports rose slightly to $224.2 … Read more

Market Brief – Wednesday 1/5/22

Stocks started the day lower and were holding their overnight decline in early trading. Treasury yields fell in overnight trading but were jammed higher in early trading as traders bet on higher interest rates. Mortgage applications fell -5.6% last week as purchase applications fell -10.2% and refinance applications fell -2.5%. ADP Nonfarm Employment beat expectations … Read more

Market Brief – Tuesday 1/4/22

Stocks gapped higher to new all-time highs in overnight trading and Treasury yields were also slammed higher as traders aggressively short the bond market. Stocks fell in early trading and Treasury yields extended their overnight rally in early trading. The “official” ISM Manufacturing PMI expanded at a slower rate in December by slowing from 61.1 … Read more

Market Brief – Monday 1/3/22

Stocks started the day higher and were up slightly in early trading. Treasury yields also started the day higher and were aggressively sold in early trading sending 30-year Treasury yields back above 2%. The Markit Manufacturing PMI expanded at a slower rate to 57.7 in December from 58.3 last month. Stocks held on to their … Read more

Taper is Bond Bullish

Most investors believe when the Federal Reserve tapers its balance sheet that it means interest rates are going to rise. Yet, something peculiar happens when the Fed reduces its monetary support for the economy as interest rates tend to fall. At the end of Quantitative Easing 3 in 2014 and later in 2017, interest rates … Read more

Market Brief – Thursday 12/30/21

Stocks started the day slightly higher and headed higher in early trading. Treasury yields fell in overnight trading and were slammed back higher in early trading. Initial unemployment claims fell slightly to +198k and total claims, including all forms of Pandemic Unemployment Assistance, rose +39k to 2.177 million. Stocks and Treasury yields closed lower on … Read more

Market Brief – Wednesday 12/29/21

Stocks started the day higher and Treasury yields were slammed higher in overnight trading. The trade deficit widened to -97.78 billion in November, the largest on record. Retail inventories excluding autos rose +1.3% and wholesale inventories rose +1.2% in November. Pending home sales fell -2.2% in November and +0.2% from this time last year. The … Read more

Market Brief – Tuesday 12/28/21

Stocks rose in overnight trading but started to give back some of those gains in early trading. Treasury yields fell in overnight trading but sellers were quick to push back in early trading. Home prices rose +1.1% in October and +17.4% from this time last year. The Richmond Fed Manufacturing index rose to 19 in … Read more