“The ISM's nonmanufacturing purchasing manager’s index increased to 55.2 in April from 53.1 in March…Within the ISM nonmanufacturing survey, "the majority of survey respondents' comments indicate that both business conditions and the economy are improving." Story at…
FED WON’T CONSIDER RATE RAISE UNTIL OCTOBER (CNBC)
Even “considering” a rate raise in October will be too early for the Markets.
THE END IS NEAR (Hussman Funds)
"Taking the broad stock market as a whole, and considering all stocks – not simply the largest of the large caps – investors are now making the broadest and most leveraged bet on overvalued equities in U.S. history. Conditions somehow do not feel so dangerous because profit margins are cyclically extreme, but I suspect that this only means that investors will be surprised by the depth of the markets losses, as they were in 2000-2002 and 2007-2009. The lessons on this really are freely available all the way back to the South Sea Bubble. Meanwhile, with Bernanke out, the Federal Reserve no longer appears inclined to pursue his wildly experimental and financially distorting policies. That’s not a good mix for speculators, and there may not be much time left until Judgment Day.” – John Hussman, PhD. Excerpted from Hussman Funds Weekly Market Commentary for 5 May 2014 at…
The yield on the 10-year Treasury Note rose slightly to 2.61% at the close.
The Bond Ghouls are worried about the stock market. If the smart money is selling, some are buying bonds.
I’m going to make this point until the S&P 500 breaks thru the old highs: The S&P 500 has closed within about 1% of the all-time high of 1891 27-times since 1 Jan 2014.It needs to punch higher or the correction will be back. The prior high was 1891 so, not yet.
MARKET INTERNALS (NYSE DATA)
The 10-day moving average of stocks advancing on the NYSE declined to 54% at the close. (A number above 50% for the 10-day average is generally good news for the market.) New-highs outpaced new-lows Monday. The spread (new-highs minus new-lows) was +56. (It was +112 Friday.) The 10-day moving average of change in the spread was minus-3. In other words, over the last 10-days, on average, the spread has DECREASED by 3 each day. The smoothed 10-dMA of up-volume continued to decline today. Only Breadth is positive. The internals remained neutral on the market.