After a lower open due to Treasury yields continuing to slide on global recession fears, the major indices tuned around and are in the green. The 2-yr yield is currently at 1.50%, only four basis points above the 10-yr yield. The 30-yr yield hit 1.91% briefly, which was a record low. The yields have come back somewhat since then, helping stocks move higher.  The Dow is up about 165 points and the S&P 500 up 12, both up about .65%.  The Nasdaq is the laggard, up 10 or 0.13%.  However, the markets are still on pace to end the month lower, but maybe a tweet or two can pull us into the green.

Eight of the 11 S&P 500 sectors are higher, with the energy, financials and industrials sectors leading the way.  The Communication Services, Information Technology and Utilities sectors are the laggards.

Oil prices got a boost from the bullish inventory data out of the API and EIA.  According to the Energy Information Administration,  U.S. crude oil inventories fell by 10 million barrels last week, compared to expectations for a decline of 2.1 million barrels, as imports slowed. Gasoline stocks dropped by 2.1 million barrels. WTI is trading up  1.85% to $55.71. 

On the economic front, the weekly MBA Mortgage Applications Index declined 6.2% following a 0.9% decline in the prior week.