December 3, 2018
Positive though non-definitive results from President Trump's G-20 meeting with China's Xi Jingping has eased concerns over a trade war and sparked a strong rally in the stock market. The Dow rose 1.1 percent to 25,826.
The day's economic news is mixed as construction spending posted its third straight decline and fourth decline in five months, the result of weakness in single-family construction as well as residential home improvements. Positive news comes once again from ISM's manufacturing sample which is reporting re-acceleration in orders and rising backlogs and employment. The day was also marked by the postponement of Jerome Powell's testimony on Wednesday and the rescheduling of data releases to honor a day of mourning for former President George H.W. Bush.
Treasuries were mixed with selling in the 2-year pushing the yield several basis points higher to 2.84 percent though the yield on the 10-year edged 1 basis point lower and is back below 3 percent at 2.99 percent. Oil jumped higher, up more than $2 and over $53 on word of a production-cut agreement between Saudi Arabia and Russia. Gold rose $10 to just over $1,235 while the dollar was little changed.