Concerns over a viral rebound and uncertainty over the prospect of fiscal stimulus have erased yesterday’s big equity rally as investor sentiment turns more cautious. Treasury bonds have benefitted as a result, but not much. The Ten-Year’s yield has slipped just a bit to 65 basis points with the Long Bond still hanging around 1.40%. Gold is up a few dollars to $1,885 while crude oil is little changed at just over $40. DJIA futures are slightly in the red.
A handful of Fed speakers will hit the stump today to talk about our economic condition and prospects while Mnuchin and Pelosi are scheduled to meet later today to discuss the latest $2.2T stimulus/relief proposal.
Earlier this morning, the Census Bureau reported that Wholesale Inventories grew 0.5% in August against an expectation of a 0.1% slip. July’s drop of 0.3% was revised to just a 0.1% slip. Also for August, Retail Inventories grew 0.8% versus a forecast of 1.1%. Inventory depletion and supply chain disruptions have caused some price volatility among a variety of products during the lockdown and it’s hoped that reopening efforts can return those variables to pre-pandemic conditions. Later today, the Case-Shiller CoreLogic Housing Report for July is due to be released.