The DAX added +0.27%, the Stoxx 600 inched up +0.14% and the FTSE 100 gained +0.64%. 10-year Bunds yield 2.505%. The Shanghai index retreated -0.47%, the Hang Seng lost -1.20% and the Nikkei 225 fell -1.22%. The April Intl. Trade in Goods (Adv.) printed at $-87.6B vs. $-162.3B prior and $1-43.0B est. April Personal Income was +0.8% (vs. +0.7% prior) vs. +0.3% est., Personal Consumption Expenditures printed +0.2% (+0.7% prior) as est., with the PCE Price Index up from 0.0% to +0.1% as est. (YoY PCE fell from +2.3% to +2.1% as est.). Core PCE ticked up from 0.0% to +0.1% as est. (YoY went from +2.7% to +2.5% as est…see Looking Ahead). April Retail Inventories (Adv.) went from -0.3% to -0.1% and Wholesale fell from +0.3% to 0.0%. The May Chicago PMI fell from 44.6 to 40.5 vs. 45.0 est. May Consumer Sentiment (final) went from 50.8 to 52.2 vs. 52.0 est., Year-ahead Inflation Expectations are +6.6% (+7.3 prior). 10-Yr T-Note yields are 4.434%. The June US$ index added +0.07% to 99.280. July crude oil lost -0.31% to $60.76. Aug. gold fell -0.81% to $3,316. Gap warned of losing $300M due to tariffs and shares sank -16%. US Treas. Sec. Bessent said Chinese trade talks stalled, w/Pres. Trump saying they violated their agreement. Trump also plans to broaden restrictions on China’s tech sector. Stocks sold off late but quickly recovered to near even.

In Europe, the DAX fell -0.44%, the Stoxx 600 retreated -0.19% and the FTSE 100 lost -0.11%. 10-year Bunds yield 2.510%. Asian markets saw the Shanghai index rebounding +0.70%, the Hang Send gaining +1.35%, the Nikkei 225 jumping +1.88%. April Pending Home Sales sank -6.3% (most in 30 mos. to near record lows) vs. -1.0% exp. Q1 GDP printed at -0.2% from -0.3% prior and -0.3% est. Personal Consumption Expenditures fell from +1.8% to +1.2% (weakest since Q2 2023) vs. +1.8% est. For the week of 5/24 Initial Jobless Claims went from 227K prior to 240K vs. 230K est. Q1 After-Tax Corp. Profits fell from +12.1% to +8.4%. The April Pending Home Sales Index sank from a prior revised +5.5% to -6.3%, vs. -1.1% est. CEO Confidence sank -26 pts. in Q2 (biggest drop since 1976). Today’s $44B 7-Yr T-Note auction had excellent results. 10-Yr T-Note yields are 4.434%. The June US$ index lost -0.47% to 99.315. July crude oil lost -1.46% to $60.94. June gold strengthened +1.47% to $3,342.80. After yesterday’s close NVDA rallied +5% on earnings and its sales forecast. A US trade court of 3 judges blocked most of Pres. Trump’s tariffs late yesterday (see Looking Ahead) and stocks soared, but today gains vanished and the ES went red. The appeals court reinstated Trump’s tariffs for now. In a rollercoaster session, stocks recovered from being red and then closed only modestly stronger.

European equities were red across the board. The DAX fell -0.78%, the Stoxx 600 retreated -0.61% and the FTSE 100 lost -0.59%. 10-year Bunds yield 2.555%. Japan’s 40-yr auction sale was the weakest in 10 mos. After pulling back from a recent spike, Japanese bond yields began to once again move higher. The Shanghai index was nearly unchanged, the Hang Seng was -0.53% lower and the Nikkei 225 was flat. For the week of 5/23 the MBA Mortgage Applications Composite Index gained from -5.1% prior to -1.2%, with the Purchase and Refinance Indexes at +2.7% and -7.1% respectively. The May Richmond Fed Mfg. Index strengthened from -13.0 prior to -9. The FOMC Minutes from May indicated the Fed is concerned about persistent inflation and high odds of recession. After yesterday’s 2-Yr Note auction found solid demand, today’s $70B 5-Yr Note auction also found good demand. 10-Yr T-Note yields are 4.547%. The June US$ index gained +0.37% to 99.790. July crude oil recovered +1.45% to $61.76. June gold inched -0.04% lower to $3,299.00. Overnight the ES was modestly higher, with prices still stronger on the open. However, a selloff started almost immediately, and stocks closed red. NDVA earnings for fiscal Q1 were due after the close but as of this writing they weren’t yet released.