Production Cuts spur on Rally
The U.S. stock market started trending higher right off the open following the overnight move in crude oil. OPEC production cuts were extended, with Saudi Arabia and Russia backed keeping the current levels going for another nine months. June crud oil futures were up over 180 point on their high, trading at 49.66 before selling off and closing below 49.00 for the day.
New high in the S&P
The equities continued their move higher through the session. The stock market got some support with strong new home sales showing up in the Housing Market Index. The consensus range had been 65-69 , and the index came in at 70, a 1.2% gain beating expectations and giving the market another bullish number to embrace. That helped the S&P 500 put in a new high above 2400, and the futures trading at 2402.25, just 1 1/2 points off their all time high.
Weaker Dollar , Treasuries
As crude oil and the stock markets saw big gains, the U.S. Dollar fell against foreign currencies. The Euro, Aussie and Pound were all up at least 2% , while the Yen and the USD both were down near 1%. Bonds and 10 Year Note futures traded lower, then sideways for most of Monday’s session. Tuesday brings Housing Starts and Industrial Production, with the market placing a keen on the numbers tomorrow morning.
John Weyer
Director Commercial Hedging
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