It’s almost hard to believe that the global markets tanked after the UK vote with the action in the last two days.  Oil which is up 2.5%, and trading around $49 is helping lift the markets.  The EIA weekly crude inventories showed a greater than expected draw down of 4.05 million barrels, slightly higher than the American Petroleum Institute’s 3.90 million barrels. 

Not sure if anyone is too concerned about the Fed right now, but we did get more economic data today.  In May consumer spending increased 0.4%, and personal income rose 0.2% or $37.1 billion.  Personal consumption expenditures (PCE) increased $53.5 billion, or 0.4 percent.  One of the Fed’s inflation measures of choice is personal consumption expenditures ex food and energy, which was up 1.6% year over year, and rose 0.2% in May.

On the housing front, pending home sales declined in May by 3.7% after increasing 3 months in a row, and decline 0.2% year over year, the first time in two years. The four major regions all saw a decline in contract activity.   Supply continues to weigh.  But with interests rate hitting going lower, this may be a temporary hiccup.

The indexes are up strong at midday. The Dow easily broke through the pivotal 17,400 level and is now just below the 50 day moving average at 17,700. The NASDAQ is at the top of the gap from June 24 near 4,775 with both moving averages still overhead. The S&P 500 is making a move similar to the Dow with the 50 day moving average just overhead at 2,068. The Russell 2000 is up most of all on a percentage basis, just popping over the 200 day moving average. It’s an impressive move higher across the board.