Today’s Trading – Another Record for Stocks as Crude Gains on Talks of OPEC Extending Production Cuts:
May 15, 2017
Stocks went on a run Monday as gains in materials and the financials sector pushed the S&P and Nasdaq to their 17th and 32nd record-high closes of the year, respectively. Energy was the third best performing sector within the S&P thanks in big part to healthy gains in crude prices. Both U.S. and Brent crude gained on the day but were roughly one percent off of their session highs by the time markets closed. The strong start for U.S. equities emboldened their European counterparts, turning a mixed session in Europe almost exclusively positive by the time traders there flipped off their computers. The Dollar fell for a third day and its momentum has the currency headed back towards its lowest levels since the U.S. presidential election. The strength in equities and commodities was directionally consistent with the higher Treasury yields. The 2-year Treasury yield rose 0.8 bps to 1.30%, the 5-year yield added 1.5 bps to 1.86%, and the 10-year note closed 1.8 bps higher at 2.34%.