US stocks opened lower. Investors continue to parse COVID-19-related headlines this morning amid some earnings news and international economic data. European indexes are slightly lower following Consumer Price Index reports that were reported in-line with consensus. Asian markets were higher, led by a gain of more than 1% in Japan’s Nikkei and bolstered by solid and better-than-expected official Chinese Purchasing Manager’s Index (PMI) data.
Mortgage rates fall to record low. 10-year Treasury yields may have fallen to record lows four months ago, but it took until Friday for the average rate on a 30-year mortgage to set a record low. We explore what happened and what it could mean for mortgage-backed securities later today on the LPL Research blog.
Reg BI begins today. Beginning today, LPL and financial professionals will need to comply with the SEC’s new Regulation Best Interest, or Reg BI, and related requirements. Visit the Resource Center’s SEC Regulation Best Interest Information Center.
July 4 Holiday Schedule. LPL Financial and the stock and bond markets will be closed Friday, July 3, in observance of the July 4 holiday. Please note:
- Client letter for July is available today.
- Weekly Market Performance blog will publish after noon ET on July 2; there will not be a morning LPL Research blog July 2 or any blogs on July 3.
COVID-19 news. Daily new US cases remained stuck around 40,000, with weekly growth rates still exceeding 30%, suggesting more work needs to be done. In recent days, Arizona has made noticeable progress in slowing its outbreak, while other hotspots in California and Texas appear to be leveling off. The positive test rate nationally reached a six-day low at 6.4%, while number of tests rose 21.5% week over week and set a new seven-day average high of more than 570,000 (Source: COVID-19 Tracking Project).
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