Market opens lower on this first day of June. Despite yesterday’s decline, the S&P finished May with its 3rd consecutive monthly gain. It’s the best run since June, 2014. The gains have been solid since February, but the 0.1% gain for May speaks to the grinding action taking place at the highs which are proving to be substantial resistance for stocks. Global Markets were largely in the red overnight. The OECD cut its outlook for global growth again. The global economy remains sluggish and continues to weigh on markets. Concerns are growing around the sustainability of Chinese growth. A French strike is having an impact on travel at a time when visitors flock to Paris. The price of oil is lower in early trading, digesting the big move to $50. Interest rates are heading lower with the 10-Year Treasury yield at 1.81%. The Bond Market doesn’t seem to be too concerned with a looming Fed rate hike, which might come in just 2 weeks.
Have a great day.
Mike
