Daily Market Color

No Record Highs Today

Equities cool, 20yr Treasury auction met with strong demand
As investors mull the heating economy’s long-term effects, the S&P and DJIA retraced their gains, falling  0.16% and 0.39%, respectively from their all-time highs. A rotation into tech stocks was the exception, with the tech-heavy Nasdaq up 0.88%. Today’s 20yr Treasury auction was met with higher than expected demand, with the 10yr yield initially increasing to 1.62% before closing down 2bps from yesterday’s level at 1.59%. Investors’ attention turns to the conclusion of the FOMC meeting tomorrow afternoon followed by Chairman Powell’s press conference.
Retail sales decreased in February
U.S. retail sales decreased in February with many pointing to the polar vortex as the main culprit. January retails sales were revised up to 7.6%, up from 5.3%. The decrease in February is viewed as temporary as demand is expected to pick up as states begin to open their economies.
Import prices accelerate
The Labor Department revealed that import prices increased 1.3% in February, which came in higher than economists’ expectations of 1.2%. Import prices in the last twelve months through February increased 3.0%. Investors’ are closing looking at price increases as the global economy starts to reopen. The 5yr U.S. breakeven rate, a measure of inflation expectations, recently increased to a twelve-year high.

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