Stock Market Update

[BRIEFING.COM] The stock market is staging another rally, building on yesterday's gains. The major equity indices have pulled back from session highs, but still show significant gains. The S&P 500 shows a 2.1% increase, the Nasdaq Composite trades 3.1% higher, and the Dow Jones Industrial Average sports a x% gain.     

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.

Gains in the mega cap space have an outsized influenced index performance thus far. Tesla (TSLA 255.57, +17.73, +7.5%) is a standout from the space, and shares are jumping despite disappointing Q1 results. The positive response follows comments from Elon Musk indicating he will be curtailing his DOGE work.

The Vanguard Mega Cap Growth ETF (MGK) shows a 3.2% gain. 

The price action in Treasuries and in the dollar have contributed to the upside bias in stocks. The 10-yr yield is down four basis points to 4.35% and the US Dollar Index is 0.7% higher at 99.53.

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.