The S&P and Nasdaq hit new record highs again today, thanks to Oil! The Dow did not enjoy a new record, but gained 85 points to close at 20,981. Thus, it is getting closer to regaining the 21,000 mark.
Oil was the primary catalyst for stocks, as it gained nearly 2% today to close at $48.79. On another note, Saudi Arabia and Russia have agreed to extend OPEC's production cuts through next March. We will know better on May 25th when it goes up for a vote. US shale producers continue to increase production, which may bring oil prices back down again. This makes for a very slippery road ahead!
As for The Dollar, it remained weaker again as traders moved into oil based currencies.
The 10-year bond yield climbed a bit today to close at 2.34%. Which is still at the bottom of the trading range for the past five months. At this moment 2.60% is the top. The Empire State report went negative for the first time since October of last year but was offset by a stronger than expected home builder’s sentiment. As of now Commodity Trading Commission is predicting that yields will go lower based upon the futures contracts that are being purchased.
Mortgage rates didn't move at all today, except for some minor tweaks to fixed rates. The average 30-year fixed remains near 4.00% with lower rates to be found…if you shop carefully. Applications for mortgages fell in April by 19% for new homes. The home builder's sentiment will hopefully bring more homes to the market and more mortgages too!