The risk off trade is still on as Treasuries continued their rally with the curve lower and flatter this morning. Equities were mixed, while oil fell roughly 2% in response to news that Russia is moving closer to an agreement to increase output. Geopolitical concerns continue to weigh on the markets, as Spain’s largest opposition party is moving towards a no-confidence vote for current Prime Minister Rajoy. Additionally, the President’s threat to raise tariffs on automobiles  has roiled not only the markets, but American allies and industry leaders as well.

Please note that the market is closing early today in observance of the upcoming Memorial Day holiday at 2:00 PM EDT.

Hafizan Hamzah
Director, Investment Management Group

DateEventSurv(M)ActualPriorRevised
05/21Chicago Fed Nat Activity Index0.30.340.10.32
05/22Richmond Fed Manufact. Index1016-3
05/23MBA Mortgage Applications-2.60%-2.70%
05/23Markit US Manufacturing PMI56.556.656.5
05/23Markit US Services PMI5555.754.6
05/23Markit US Composite PMI55.754.9
05/23New Home Sales680k662k694k672k
05/23New Home Sales MoM-2.10%-1.50%4.00%2.00%
05/23Revisions: New Homes
05/23FOMC Meeting Minutes
05/24Initial Jobless Claims220k234k222k223k
05/24Continuing Claims1746k1741k1707k1712k
05/24FHFA House Price Index MoM0.60%0.10%0.60%0.80%
05/24House Price Purchase Index QoQ0.70%1.70%1.60%1.70%
05/24Bloomberg Consumer Comfort55.254.6
05/24Existing Home Sales5.55m5.46m5.60m
05/24Existing Home Sales MoM-0.90%-2.50%1.10%
05/24Kansas City Fed Manf. Activity202926
05/25Durable Goods Orders-1.30%-1.70%2.60%2.70%
05/25Durables Ex Transportation0.50%0.90%0.10%0.40%
05/25Cap Goods Orders Nondef Ex Air0.70%1.00%-0.40%-0.90%
05/25Cap Goods Ship Nondef Ex Air0.40%0.80%-0.80%-0.70%
05/25Revisions: Wholesale Trade
05/25Revisions: Retail Sales
05/25U. of Mich. Sentiment98.898.8
05/25U. of Mich. Current Conditions98.6113.3
05/25U. of Mich. Expectations89.5
05/25U. of Mich. 1 Yr Inflation2.80%
05/25U. of Mich. 5-10 Yr Inflation2.50%