The markets have gained back all their losses from yesterday’s sell off on the back of the tweets from President Trump calling off the trade negotiations.  Today investors are hopeful again that there will at least be targeted plans. The Nasdaq is the top performer +1.73%, followed by the Dow +1.64% and the S&P 500 +1.58%.

All 11 S&P sectors are higher, with Materials leading the way, followed closely by Consumer Discretionary and Industrials.  Energy and Utilities are the laggard.

WTI crude continues to decline, trading at $39.42 per barrel on the heels of the EIA report, which showed stockpiles in the US increased by 0.501 million barrels last week, topping estimates of 0.294 million barrels.  Natural gas on the other hand is back to pre-pandemic levels and is up more than 80% since it hit a low in June, with prices that had not been seen in 25 years. Fall and winter are historically strong for Natural Gas as the heating season spurs demand.

Breadth is decidedly positive, approximately 3-1, and up volume blowing away down volume as is the number of new 52-week highs.

Mortgages Applications

According to the Mortgage Bankers Association, U.S. mortgage applications rose 4.6%, recovering from the 4.8% drop the precious week. 

• Refinances applications +8.2%
• Purchase applications -1.5%
• Average fixed 30-year mortgage rate -4 bps, to a new low to of 3.01%