May 16, 2018
A second straight 0.7 percent gain for industrial production and one that includes a solid 0.5 percent April gain for manufacturing is a plus for the second-quarter outlook. Housing starts and permits were mixed though still consistent with a rising curve for housing. The day's news also includes a surprise 3 tenths decline in business inflation expectations to 2.0 percent in May, making for a quick evaporation of what could have been initial tariff-related price worries during April.
Bonds continued to ease with the 10-year yield rising several basis points and now at 3.10 percent. Gold at $1,290 and oil at $71.50 were little changed. The Dow rose 0.3 percent to 24,768.