Stocks rallied in overnight trading as global investors were optimistic about the global economy returning to normal. Those hopes quickly faded in early trading as stocks gave up their overnight gains. Treasury yields rose in overnight trading and rose further in early trading before buyers arrived.
OPEC met today to confirm they will curb output cuts as planned. After rallying before the meeting, crude oil was rapidly selling off following the announcement.
The Markit Manufacturing PMI showed the manufacturing sector expanded at a slightly faster rate in May.
Construction spending rose +0.2% in April.
The “official” ISM Manufacturing PMI showed the manufacturing sector expanded at a slightly faster rate in May. Prices paid slowed slightly, employment was flat, and new orders rose in May.
Stocks closed flat on the day as they gave up all of their overnight gains. Treasury yields closed higher on the day but below their intraday highs. Thirty-year Treasury yields failed to pierce their 50-day moving average on today’s move higher which is a bearish indicator as 30-year Treasury yields closed below their 50-DMA.