US Treasuries Still Selling Off, LinkedIn Down 20% Post Earnings

Economic Data

- (IN) India Weekly Forex Reserves w/e Apr 24th: $344.6B v $343.2B prior - 09:30 (CA) Apr Canada RBC Manufacturing PMI: ## v 48.9 prior
- (US) Apr Final Markit Manufacturing PMI: 54.1 v 54.2e
- (US) Mar Construction Spending M/M: -0.6% v 0.5%e
- (US) Apr ISM Manufacturing: 51.5 v 52.0e; Prices Paid: 40.5 v 42.0e
- (US) Apr Final University of Michigan Confidence: 95.9 v 96.0e

While the selloff in European bonds seems to have moderated this morning, US yields are still moving up on some mixed data reports. The 10-year UST yield has moved up more than seven basis points to trade above 2.01% for the first time since early March. As of writing, the DJIA is up 0.72%, the S&P500 is up 0.61% and Nasdaq is up 0.70%.

The headline ISM manufacturing index failed to rebound as expected in April, remaining flat with the March reading. However there was notable improvement in the production and new orders indexes, both of which rose by roughly two points each. The March Construction Spending report was softer than expected. EUR/USD had moved up to 1.1290 through the US cash open, however the pair turned around after it failed to take out 1.3000.

Like the other supermajors earlier this week, Chevron crushed earnings expectations even as profits fell sharply from the year-ago period in the wake of the oil meltdown. Unlike the other big oil firm, Chevron's revenues also fell sharply, and shares of CVX are down more than 2%. AIG is up 2.5% after its profits declined less than expected. However the most notable decliner is LinkedIn, down more than 20% after the social media powerhouse cut its FY and offered Q2 guidance at less than half the expected amount.

Looking Ahead

- 13:00 (US) Weekly Baker Hughes Rig Count data
- 15:45 (US) Fed's Williams (Voter, dove) speaks at Chapman University Conference
- (US) Apr Domestic Vehicle Sales: 13.45Me v 13.35M prior; Total Vehicle Sales: 16.90Me v 17.05M prior