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Market Brief – Friday 5/28/21

Stocks rose in overnight trading but immediately met sellers after the opening bell. Stocks were down slightly from their overnight highs in early trading. Treasury yields were flat in overnight trading but were falling in early trading.

Personal Consumption Expenditures (PCE), the Fed’s preferred inflation gauge, rose +0.6% in April and +3.6% from this time last year. Excluding food and energy, Core PCE rose +0.7% in April and +3.1% from this time last year.

Personal incomes fell -13.1% and personal spending rose +0.5% in April. Inflation-adjusted spending fell -0.1% in April.

The University of Michigan Consumer Confidence Survey showed declines in consumer sentiment, current conditions, and consumer expectations. Inflation expectations and 5-year inflation expectations rose considerably.

Stocks closed higher on the day but could not hold their overnight highs. After declining in early trading, Treasury yields closed slightly higher on the day.