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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   96-00 (+12.5)  
  FN 2.5% Coupon   103-17.5 (+05.5)  
  Support   1.269%  
  Resistance   0.798%  
  Tuesday, April 20, 2021

US Stocks Decline; Investors Focus on Earning Season

The market opened today's session with treasuries higher across all maturities. The 10-Year Treasury yield is at 1.5854, 1.93 bps lower than prior closing of 1.6047.
US were on route for their first back-to-back drop since late March as investors shifted through pools of corporate results. The S&P 500 Index dropped 0.2% with energy and financial shares leading declines. United Airlines Holdings Inc. paced a sell-off in travel shares on a bigger-than-expected loss. International Business Machines Corp. climbed after reporting its largest revenue growth in almost three years. Later on Tuesday, Netflix’s results may show whether the streaming giant can manage expectations as Wall Street projects a steep slide in its metric. As the US House of Representatives passed the marijuana banking bill, Sundial Growers Inc., Tilray Inc. and Aphria Inc. saw quick gains. Meanwhile, Altria Group Inc. and other tobacco stocks saw declines as a report came out where the US government may only allow cigarettes with nicotine levels so low that they’re no longer addictive. Johnson & Johnson posted stronger-than-expected sales, while Travelers Cos.’s earnings beat estimates and Philip Morris International Inc. raised its outlook. Procter & Gamble Co. is boosting the prices of some consumer products as the household-goods giant grapples with higher commodity costs. With stocks still trading near all-time highs, investors are shifting their focus to what is forecasted to be the best earnings season in two years amid mounting concern over inflation. As costs from labor to raw materials keep climbing, what remains to be seen is whether companies can charge more for products without losing business. On Wednesday, the EIA crude oil inventory report comes out. On Thursday, European Central Bank will decide on rates and President Christine Lagarde will host a briefing session. New home sales data for the US will come out on Friday.
The curve has bull-flattened with the UST 10-Year yield down 1.93 bps.
This Week's Events
  04/21 MBA Mortgage Applications 04:00 16 Apr - - -3.70% -  
  04/22 Initial Jobless Claims 05:30 17 Apr 610k - 576k -  
  04/22 Continuing Claims 05:30 10 Apr 3640k - 3731k -  
  04/22 Leading Index 07:00 Mar 1.00% - 0.20% -  
  04/23 Markit US Composite PMI 06:45 Apr P - - 59.70 -  
  04/23 Markit US Services PMI 06:45 Apr P 61.50 - 60.40 -  
  04/23 Markit US Manufacturing PMI 06:45 Apr P 61.00 - 59.10 -
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