Reopening Rally Continues

Optimism and enthusiasm regarding the nation’s commercial reopening continue to drive equity prices higher as positive data adds support. On the heels of yesterday’s better-than-expected New Home Sales report for April, the Mortgage Bankers Association announced this morning that, for the week ending May 22nd, new Mortgage Applications rose 2.7%. Within that total, purchase applications rose 8.6%. Also this morning, the Richmond Fed reported that its Manufacturing Index for May improved more than expected to a level of minus 27 from minus 53. Analysts were only anticipating an improvement to minus 40. The Fed’s Beige Book, an aggregation of regional bank conditions, is scheduled for release this afternoon.

So far this morning, equity markets are solidly in the green as Treasury prices have also moved slightly higher following yesterday’s moderate sell-off. The Treasury Ten-Year is yielding around 67 basis points; slightly lower than yesterday’s close. WTI has slipped slightly to around $33.65/barrel while gold has slipped a little more to $1,700.