STOCKS RALLY, BONDS TUMBLE: Here's What You Need To Know

The Dow was up by as much as 214 points this morning.  While it shed most of those gains, the stock market nevertheless closed in the black today, breaking a three-day losing streak.

First the scoreboard:

Dow: 15,436, +133.1 pts, +0.8%
S&P 500: 1,662, +12.9 pts, +0.7%
NASDAQ: 3,493, +34.2 pts, +0.9%

And now the top stories:

  • Investors and traders returned from their three-day weekends and hit the ground buying.  And there was some good economic news to help fuel the rally.
  • The S&P Case-Shiller home price index jumped 10.9% year-over-year, beating expectations for a 10.2% rise.  This was the fast pace of price gains since April 2006.  Only New York City and Minneapolis saw prices fall during the period.
  • The Conference Board’s May consumer confidence index blew away expectations, surging to 76.2 from April’s reading of 69.0.  Economists were looking for a reading of 71.2.  The May reading was a five-year high.
  • Two regional manufacturing surveys showed signs of improvement. At least, things appear to be getting less bad in the sector.  The Richmond Fed Manufacturing index climbed to -2 in May from -6 in April.  The Dallas Fed Manufacturing index improved to -10.6 from -15.6 a month ago, however the May reading was just shy of the -10.0 level economists were looking for.
  • Bonds tumbled amid the strong econmoic news and the stock market rally. The sell-off caused the 10-year Treasury note yeild to surge to its highest levels of the year.
  • Don’t Miss: These Skyscrapers Predicted History’s Worst Financial Crises >

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