China data and renewed lockdown measures in Asia result in lower open Summary: Stocks opened lower, forgoing any animal spirits produced by the blockbuster deal announced between AT&T and Discovery. Chinese data missed expectations, while Taiwan tightened pandemic measures amid an intense drought that is weighing on its economy.
Overnight: - China economic rebound easing as activity indicators missed expectations; likely motivate Beijing to keep its accommodative fiscal and monetary polices in place for longer - Covid remained a concern in several Far East countries (Taiwan and Singapore saw restrictions tightened. new infections continuing to rise in Japan as tougher restrictions go into effect in more prefectures) - Inflation and rates remain in focus with policymakers likely to continue rhetoric that the pick-up in inflation seen as transitory.
US Session -(BR) Brazil May FGV Inflation IGP-10 M/M: 3.2% v 2.7%e -(IS) US Sec of State Blinken: Greatly concerned by the escalating violence between Israel and Hamas; will conduct intensive diplomacy -(US) MAY EMPIRE MANUFACTURING: 24.3 V 24.0E; Says indexes for future prices paid and future prices received remained elevated -(US) Fed's Bostic (FOMC voter): expect a lot of volatility on inflation in next couple months; will be hard to judge underlying inflation trends for a couple months - CNBC -(US) MAY NAHB HOUSING MARKET INDEX: 83 V 82E -(US) Fed Vice Chair Clarida: US economy is in a very fluid period; baseline outlook is growth of perhaps 7% in 2021.
Europe and Asia -(IE) Ireland PM Martin: EU is not trying to punish the UK on Irish protocol -(PL) Poland Apr CPI Core M/M: 0.5% v 0.6%e; Y/Y: 3.9% v 3.7%e.
Corporate Headlines -T confirms to merge Media units with Discovery in all-stock Reverse Morris Trust deal; AT&T to receive $43B in a combination of cash, debt securities -CLVT to acquire data analytics provider ProQuest in $5.3B deal -LEV Q1 -$0.15 v -$0.05 y/y, Rev $6.2M v $1.2M y/y; Deliver's 10 Lion6 trucks to AMZN after the end of Q1 -TSLA Elon Musk denies speculation Tesla has sold Bitcoin -CRL to acquire Vigene Biosciences to Enhance Gene Therapy Capabilities for $292.5M in cash, subject to customary closing adjustments-CCL Carnival Corporation brands resume cruising in Europe and the Caribbean; hopes to begin US operating sailings in July from Miami and Galveston.
Indices: Dow Jones -0.4% - S&P 500 -0.4% - Nasdaq -0.5% - Russell 2000 -0.4%.
Treasuries:- US 2-yr: +0.4bps at 0.155% - 10-yr: +0.9bps at 1.644% - 30-yr: +0.2bps at 2.357% - 2-10 spread: +0.5bps at 1.489%.
Commodities: - May crude oil $66.14, +1.2% - Jun Gold $1,862oz, +1.3% - May Silver $27.93/oz, +2.1% - May Copper $4.706/oz, +1.1%.
- Source TradeTheNews.com