Equities Stage a Comeback as Reopening Pauses

Stock markets are looking to claw back some of the ground lost in Friday’s massive sell-off as COVID-19 infections surge around the country. Despite a pause being taken in the reopening efforts of many localities, equity markets will likely begin their day in the green as bond prices slip slightly.

The only fundamental statistics scheduled for release today are May’s Pending Home Sales looking for a 19% comeback after April’s 22% plunge along with the Dallas Fed’s June report for its Manufacturing Index. That measure is expected to improve, but still remain deeply negative. May’s value of minus 49.2 is forecast to make it back to minus 21.4. Investors may be treading water today as they await tomorrow’s testimony by Steve Mnuchin and Jerome Powell when they appear before the House Financial Services Committee.

At the moment, the Treasury’s Ten-Year yield has inched up a basis point or two to around 0.65% as the long bond remains below 1.40%. The Two-Year’s yield is so far unchanged at around 16 basis points. Crude oil is little changed at just under $40 while gold has slipped about $3 to $1,768. Don’t forget, the Jobs Report will come out on Thursday since markets will be closed on Friday.