Stocks were in full-on rally mode following the holiday weekend as investors believe a big payroll report will lead to a huge boom in consumption. Following the same news, investors believe strong payroll numbers will lead to higher interest rates even though there is an inverse correlation between payrolls and yields. After touching 2.4% in overnight trading and again in early trading, 30-year Treasury yields were slowly headed lower.
The Markit Services PMI showed the services sector expanded at a slightly faster rate in March with a print of 60.4. The Markit Composite PMI also expanded at a slightly faster rate in March.
Durable goods, excluding defense, fell -0.8% in February, and factory orders also fell -0.8% in February.
The “official” ISM Non-Manufacturing PMI beat expectations by expanding at a faster rate in March with a 63.7 print. Leading the report were prices paid, business activity, and new orders.
Stocks closed their their session highs as investors continue to bid stock prices higher and higher. Treasury yields closed lower on the day but were down slightly from the opening bell.