Stocks surged in overnight trading following a huge move by Facebook following its earnings report yesterday after markets closed. Treasury yields also jumped in overnight trading. Stocks gave back a bit of their overnight gains in early trading while Treasury yields were trying to fade their overnight gains.
Initial unemployment claims fell to +180k last week as employers continue to hold onto employees. Total claims dropped -105k to 1.515 million as unemployed workers are having no problems finding new opportunities.
Preliminary first-quarter GDP growth contracted at -1.1% as the price index rose +8.0% and sales declined -0.6%.
Today’s $44 billion 7-year Treasury Note auction was met with strong demand as foreign bidders took 65.0% of the auction and domestic bidders took 19.8% of the auction, leaving securities dealers with 15.2% of the auction.
Stocks surged to close the day higher and Treasury yields slightly lower.