Crude inventories for week of July 17 Crude oil inventories 2.47M build vs. consensus of 2.2M draw. Gasoline inventories 1.73M draw vs. consensus of 300K build. Distillates 235K build vs. consensus of 1.8M build.
Treasury Action: yields rebounded from lows Treasury Action: yields rebounded from lows with a little bottom-fishing on Apple and tech stocks, combined with the uptick on existing home sales. The T-note yield tested the 2.31% July 50% retrace area earlier and then recovered above 2.32%. The 2s-10s spread steadied at +163 bp after narrowing inside that area, compared to +169 bp Tuesday wides.
U.S. tech stocks slump is being viewed as a buying op U.S. tech stocks slump is being viewed as a buying op according to some after the residual opening selling washes through on Apple, which remains a fund darling after record earnings despite the topline miss. Adding fuel to that conjecture is the uptick in USD-JPY to session highs of 123.97, which appears to be signaling risk-on despite the opening carnage. Apple traded over 9% lower overnight, but has since trimmed those losses to -5.9%.
U.S. Existing Home Sales Preview: U.S. Existing Home Sales Preview: June existing home sales should reveal a 0.4% decline to a 5.330 M (median 5.400 M) pace from 5.350 M in May. The NAHB index improved to 60 in June from 54 in May and the housing starts report for June revealed an increase in the pace to 1.174 M from 1.069 M in May. For more detail, see our existing home sales preview.