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From the Desk - Economic Commentary

Brandon Casey, VP, Member Strategies - 1/25/2022

Volatility in the U.S. stock markets continues as equities are plunging to begin trading today. All three major averages are down over 2% in early trading after one of the most historic comebacks on record yesterday. All three averages closed higher after opening with major losses, with the DJIA rallying from a 1,100-point loss and the Nasdaq reversing an early 4.9% loss, its biggest intraday rebound since 2008.

Looking at economic data today, the S&P Case-Shiller National Home Price Index (HPI) rose 1.1% in November and 18.8% over the past year, which is slightly lower than the growth from the prior month. The closely watched 20-city HPI rose 1.2% for the month and 18.3% over the past year, also slightly slower growth than the previous month. The FHFA HPI also rose 1.1% in November and prices were up 17.5% over the past year, one-tenth higher than the previous month.

Elsewhere, the Conference Board Consumer Confidence Index fell less than expected to a reading of 113.8 in January. The index had been expected to fall 3.5 points to a reading of 111.7. The Present Situation Index rose over three points to a reading of 148.2, while the Expectations Index fell nearly five points to a reading of 90.8.

U.S. Treasury yields are higher this morning, with the 2-year Treasury yield up 1.3 basis points to 1.00%, the 5-year Treasury yield up 3.2 basis points to 1.54% and the 10-year Treasury yield up 1.4 basis points to 1.75%. Advance rates are higher throughout most of the curve today.

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