Today’s Trading Activity – Stocks Set New Records as ADP Points to Continued Labor Strength
Jun 1, 2017
All three major equity averages climbed to new record highs after the May ADP report rekindled a positive sentiment that the U.S. economy will benefit from further strengthening in the labor market. The S&P added 0.8% as the Dow added 0.7% to record its first record close since March 1. The Dollar and Treasury yields also signaled a positive response but both were off of session highs by the market close. After a more than 2 bp parallel shift higher in the Treasury curve just after the big ADP beat, yields finished up less than 1 bp with the 2-year yield at 1.29% and the 10-year yield settling at 2.21%. Crude prices were volatile. Initial gains on the back of drawdowns of both crude and gasoline supplies dissipated as the same report showed U.S. production rose to its highest level in ten months.