Stock Market Update

[BRIEFING.COM] The stock market registered solid gains, building on yesterday's rally. The major equity indices closed off their highs, but maintained gains between 1.1% and 2.5%. The Nasdaq Composite traded up as much as 4.5% at its high, settling 2.5% higher than yesterday.

The market is feeling good about recent commentary from the president, indicating that he has no intention of firing Fed Chair Powell and that he will not "play hardball" in trade talks with China, adding that tariff rates will come down substantially if the two sides reach a deal.

Positive price action in stocks that reported earnings also boosted sentiment. Tesla (TSLA 250.74, +12.77, +5.4%) was a standout in that respect, and shares jumped despite disappointing Q1 results. The positive response follows comments from Elon Musk indicating he will be curtailing his DOGE work.

Dow component Boeing (BA 172.37, +9.85, +6.1%) was another big earnings-related winner.

Many stocks benefitted from buying interest, leading the Invesco S&P 500 Equal Weight ETF (RSP) to close 1.0% higher and nine of the S&P 500 sectors to close in the green. Five sectors rose more than 1.0%, including the top weighted technology sector (+2.9%).

The 10-yr yield was unchanged from yesterday at 4.39%

• Dow Jones Industrial Average: -6.9% YTD
• S&P 500: -8.6% YTD
• S&P Midcap 400: -10.7% YTD
• Nasdaq Composite: -14.5% YTD
• Russell 2000: -14.0% YTD

Reviewing today's economic data:

• Weekly MBA Mortgage Applications Index -12.7%; Prior -8.5%
• April S&P Global US Manufacturing PMI - Prelim 50.7; Prior 50.2
• April S&P Global US Services PMI - Prelim 51.4; Prior 54.4
• March New Home Sales 724K (Briefing.com consensus 684K); Prior was revised to 674K from 676K
  • The key takeaway from the report is that new home sales in March were aided by several factors that included better weather, more stable mortgage rates, and lower prices, but questions will remain about the sustainability factor given the jump in mortgage rates and stock market losses that have been seen in April.

Looking ahead to Thursday, market participants receive the following data: 8:30 ET: March Durable Orders (Briefing.com consensus 1.5%; prior 0.9%), Durable Orders ex-transport (Briefing.com consensus 0.3%; prior 0.7%), weekly Initial Claims (Briefing.com consensus 220,000; prior 215,000), and Continuing Claims (prior 1.885 mln); 10:00 ET: March Existing Home Sales (Briefing.com consensus 4.20 mln; prior 4.26 mln); 10:30 ET: Weekly natural gas inventories (prior +16 bcf).