Good Morning on this best day of the week Wednesday,

Stocks pulled back yesterday and are flat today after being up 200 on the Dow early on. The number of Covid cases (3 million confirmed in the US) continue to rise and markets are jittery on how that will play out in the economy. That V-shaped recovery is, well, unlikely. Bonds are also flat on the day but the upward trend (higher prices and lower rates) is still intact. On the economic data front, following strong housing sales data, today’s mortgage application data was surprisingly good.  Crude oil inventories climbed significantly which could, if we recall March, could prove bearish for oil and bullish for bonds. Gold broke $1800/oz which is a fairly strong indicator that more people are hedging against a fall in equities. The one caveat to all this is that investors continue to search for yield (return on their investment), and a 10-yr Treasury paying .6% just doesn’t cut it (that is until you have to be worried about the return of your principal instead of the return on your principal).

Pretty good day so far all around.
 
Please remain safe and stay healthy, make today great!