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Market Brief – Thursday 4/1/21

Stocks gapped higher in overnight trading and Treasury yields fell in overnight trading as the persistent selling of Treasury securities from Japanese commercial banks appears to have ended. Stocks were in rally mode in early trading and yields were continuing to head lower.

Initial claims missed expectations as +719 Americans filed for unemployment benefits last week. All forms of unemployment benefits, including Pandemic Unemployment Assistance, fell -1.518 million to 18.214 million.

The Markit Manufacturing PMI increased at a slightly faster pace in March to 59.1 from 58.6 showing a continued expansion in the U.S. manufacturing sector.

The “official” ISM Manufacturing PMI shot to its highest level in decades in March to 64.7 from 60.8. Leading the survey were new orders, prices paid, and employment.

Construction spending fell -0.8% in February.

Stocks closed higher as investors bid up stock prices into the long holiday weekend. Treasury yields closed lower as bond prices rallied despite claims a blow out in tomorrow’s Nonfarm payroll report will lead to a spike in Treasury yields over inflationary fears.