May construction spending showed an unexpected decline, as
spending fell 0.4% in May on the heels of a 0.2% decrease in April; the ISM
report also brought a surprise to investors, showing an unexpected drop in
growth in the month of June. The ISM report brought about a general
consensus in the investing community that more rate hikes are on the way.
US Treasuries declined, ending a two-day rally in the bond
market. The 10-year note rose 1 basis point after an industry report
showed an increase in manufacturing price last month. This dip in the
treasuries led investors to believe that even more rate hikes have yet to come.
The manufacturing report had a different effect upon the
Dollar, as it rose the most in a week against the yen. This move up
solidified a rebound from three-week lows as investors continue to bet on
another US rate hike.
On the eve of the travel holiday July 4, crude oil prices
changed little, up 0.08 at $79.93 a barrel.
The softs were all higher today, except for cotton, which
closed down 1.5%.
The grains traded mixed, with corn and wheat pacing the gains
with profits over 3%.
The meat sector made gains across the board, except for
potbellied pigs, which fell nearly 2%.
May Construction Spending Shows
Unexpected Decline (full
story).
ISM Report Shows Slower Growth In The Manufacturing Sector (full
story).
John Patrick Lee
