Markets Treading Water

The Treasury market is little changed in early trading as efforts to increase covid-related relief payments appear to have little chance of success. The Census Bureau reported this morning that the nation’s Trade Balance became more negative in November with a move to minus $84.8B from minus $80.3B. Analysts were expecting minus $81.5B. Also from the Census Bureau, Retail Inventories grew by 0.7% last month in a slight come-down from October’s rise of 0.9%. In an indication of future supply chain disruptions, Wholesale Inventories dropped unexpectedly by 0.1% last month versus a forecast of 0.6% growth. Those inventories grew by 1.2% the month before. A little later today, the National Association of Realtors is expected to report that Pending Home Sales were flat in November after falling by 1.1% the prior month. We’ll also hear from Market News International through a report that is expected to show that its Chicago PMI fell slightly this month.

Meanwhile, the Ten-Year is resting at 94 basis points with the Long Bond at 1.67%. Crude oil is up slightly to $48.34 while gold has also enjoyed a modest gain to $1,881. Domestic equity indices look to open with a positive tone.