Reopenings Rally Stocks

Investors’ spirits, perhaps buoyed by widespread reopenings around the country over this past holiday weekend, are poised to open substantially higher as slipping bond prices have pushed the Ten-Year’s yield back up to almost 70 basis points. More news from Merck about a possible treatment medication and vaccine has also contributed to positive sentiment for equities.

The sentiments of consumers will be better known later this morning when the Conference Board is expected to report a slight improvement in its Consumer Confidence Index. Before that, the Case-Shiller House Price Index is expected to show that home prices have continued to rise nationwide at a year-over-year clip of just under 3.5%. In the meantime, a disappointing report from the Chicago Fed just disclosed that its National Activity Index plunged even further into negative territory with an April reading of minus 16.74 while it was expected to improve to minus 3.5 from March’s minus 4.19. DJIA futures indicate an opening over 500 points higher than last Friday’s close. WTI is up almost a dollar to $34/barrel while gold has slipped around $3 to $1,728.