The only economic release today came from the Empire Manufacturing index. That index came in better than expected at -6.0 vs -9.0 estimate and also up from -15.6 last month, but it was still negative

  • Prices paid improved to +24.5 vs +33.7 prior
  • Employment weakened to -8.7 vs -5.1 prior
  • The 6-month index improved to +30.1 vs +14.5 prior (two year high)

The numbers are the first manufacturing survey of the month and although better, employment weakened.

Nevertheless, the data did not deter US rates from moving higher. As the day comes to a close, the yields are nearer their highs for the day in the short end. The longer end was off highs but still solidly higher.

  • 2-year yield 4.765%, +8.1 basis points
  • 5 year yield 4.303%, +7.7 basis points
  • 10 year yield 4.2809%, +6.8 basis points
  • 30 year yield 4.408%, +5.7 basis points

Although yields moved higher, it did not slow the US stocks which closed higher led by the Nasdaq which has now closed higher for 6-consecutive days, which each successive high closing at a new all-time high. The S&P rebounded after a modest decline on Friday that snapped it 4-day win streak (and string of higher closes).

A snapshot of the final numbers are showing

  • Dow Industrial Average average of 188.94 points or 0.49% at 38778.11
  • S&P index of 41.63 points or 0.77% at 5473.24
  • NASDAQ index up 168.14 points or 0.95% at 17857.02

The small-cap Russell 2000 also rose with a gain of 15.84 points or 0.79% at 2022.00.

Despite the rise, Nvidia did not participate in the rally as it fell $0.90 or -0.68% to $130.98. Since splitting attend to one on June 10, the price was up four of five trading days with the price moving from a tree split level of $120.89 to a high close yesterday of $131.88 (9.09%).

In the Forex market, the EUR is ending the day as the strongest of the major currencies. The JPY is the weakest. The USD is ended the day mixed with declines versus the EUR, GBP, and CAD. The greenback rose versus the JPY and NZD. The dollar was near unchanged versus the AUD and the CHF today.

The EURUSD extended higher in the USD session and is threatening to move back above a low swing area between 1.0720 and 1.0735. A move above that level would disappoint sellers from the break lower on Friday, and have traders looking toward the midpoint of the trading range since the April low. That level comes in at 1.07579.

The USDJPY extended above the high price going back to May 29 at 157.71, but fell short of the Friday high at 158.248. The price is back down re-testing the May 29 high price into the close. Earlier today, the price bounced off of its 100-hour moving average. That 100 hour moving average currently comes at 15719 and would represent a support level on more selling in the new trading day. Moving below that level would increase the bearish bias.

In other markets:

  • WTI crude oil settled up $1.88 to $80.33 per barrel. That's the highest settlement since late April and just shy of the May intraday high of $80.62.
  • Gold fell $-13.36 or -0.57% at $2319.16 as it reacted to higher rates
  • Silver fell 8.4 cents or -0.29% at $29.46.
  • Bitcoin today traded as low as $65,066 but then snapped back higher and is currently trading at $66,459

The Reserve Bank of Australia is expected to announce its interest rate decision with no change expected (12:30 AM ET). Tomorrow in the US, retail sales will be released at 8:30 AM ET.