Empire Manufacturing & Industrial Production

Joe Terranova
The Empire (New York) Manufacturing Index contracted in May to (-1.43) after last month’s +3.05 reading. Consensus estimates for the report were +4.00.

Updated SPX Technical Formation

Joe Terranova
The S&P 500® Index (SPX) traced out another new all-time high yesterday at 1632.78. Over the past five days, leadership within the index has transitioned to year-to-date laggards: industrials, materials, and energy. I would also offer that an uptick in bullish sentiment seems far more present over the past week than at the beginning of the second quarter.

Currency Check

Joe Terranova
Last evening, the Reserve Bank of Australia (RBA) reduced its interest rate 0.25% to a now record 2.75%. Governor Glenn Stevens joins his central bank counterparts from the United States, Europe, and Japan in adopting easier monetary policy to carefully lower the value of his domestic currency. Keep in mind, historically the RBA favors higher rates relative to other developed economies in order to attract capital inflows to offset a 30-plus year streak of account deficits. read more....

Job Gains Suggest A Shift To Cyclicals?

Joe Terranova
On Friday morning, May 3, the Department of Labor released the nonfarm payroll report for the month of April. Over the past few days, a disappointing construction spending figure and a weaker than forecast ADP private payroll report reduced consensus estimates for monthly job gains. However, the surprise this past Friday morning was to the upside as a much stronger than forecast report was released.

First of the Month U.S. Economic Data

Joe Terranova
The FOMC concluded its two-day meeting this afternoon with a 2:00 p.m. statement that it will maintain its current pace of QE purchases at $85 billion per month. However,

Past performance is not a guarantee of future results.

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