Stocks have been decoupling from oil lately, and that was evident again today. Oil fell by more than a dollar per barrel after data showed increasing output by OPEC members. But U.S. stocks shrugged off the news, heading higher across the board.
The Industrials added 117 points, while the Transports rose 0.67%. The Nasdaq and S&P 500 both rose by slightly less than one percent. Gold was little changed on the day and remains just under 1300. The dollar declined, reaching new short-term lows while bond yields rose.
On the economic front, the ISM manufacturing index came in at 50.8 for April, showing very modest expansion. Interestingly, the "prices paid" component of this report came in at 59 (from 51.5 in March), pointing towards possible building inflationary pressures.
Construction spending was up 0.3% in March, below estimates and the previous month's reading of 1.0%
Watch for Trend Alignment
By Matthew Kerkhoff
A few years ago I wrote ... Log in or subscribe to continue reading.