Stocks have been off to the races since the start of trading and haven’t looked back. Even economic data that was weaker than expected hasn’t been able to derail investors who are out bargain hunting.
The University of Michigan consumer sentiment in May declined to 82.8 from April’s 88.3 and missed he consensus if 90.4.
To see the chart, click here.
Rising prices and inflation concerns were key contributors. The inflation expectations for the upcoming year soared to 4.6%, up from 34%, while the 5-year inflation outlook climbed to 3.1% from 2.7%. The University of Michigan stated, "It should be no surprise that consumers anticipate a booming economy over the next year or so, including rapid job gains as well as increases in the inflation rate and interest rates. Indeed, consumers think these economic prospects are the natural result of stimulating an economic boom from last year's shutdown".
The ten year yield doesnt seem to be worried about inflation today and is down to 1.64%, or 3 basis points.
Month over Month
- Current economic conditions dropped to 90.8 from 9.7
- Expectation dipped to 77.6 from 82.7
Markets
What a difference a day makes. All the major indices are in the green and the Nasdaq is the best performer, up over 2%. Breadth is decidedly positive on both the NYSE and Nasdaq to the tune of about 4-1. New highs are back over new lows, and the up volume is blowing away the down.
All 11 S&P 500 sectors are in the green with Energy and Technology outperforming while Consumer Staples is the laggard.
S&P 500 Index | +1.41% |
Communication Services XLC | +1.59% |
Consumer Discretionary XLY | +1.49% |
Consumer Staples XLP | +0.68% |
Energy XLE | +2.98% |
Financials XLF | +1.31% |
Health Care XLV | +0.77% |
Industrials XLI | +1.37% |
Materials XLB | +1.13% |
Real Estate XLRE | +0.87% |
Technology XLK | +2.07% |
Utilities XLU | +0.72% |
Have a great weekend. Stay safe and be well.