Stocks and Treasury yields rose in overnight trading as bad news is becoming good news for market participants who believe the Fed will pivot in September.
Mortgage applications rose +1.2% last week as both purchase and refinance applications rose slightly.
The S&P Services PMI contracted in July to 47.3 from 52.7 last month.
The ISM Non-Manufacturing PMI expanded at a faster rate in July to 56.7 from 55.3 last month. Business activity and new orders expanded at a faster rate, prices paid expanded at a slower rate and employment was unchanged.
Durable goods new orders, excluding defense rose +0.5%, factory orders rose +2.0%, and factory orders excluding transportation rose +1.4% in June.
The Department of Energy reported crude oil inventories as Crude: +4.467mm (-629k expected), Cushing: +926k, Gasoline: +163k (-1.614mm expected), and Distillates: -2.400mm (+1.038mm expected).
Stocks surged to close higher on the day as momentum-trading machines short-covered their equity positions. After moving higher in early trading, Treasury yields hard reversed to the downside to close lower on the day.