It has been a seesaw type of day.  The major indices opened in the red, turned higher, declined again and are now higher by about 0.25%.  The S&P 500 has bounced off its 200-day moving average. Seven of the 11 S&P 500 sectors are in the green. 

Financials are the best performers in today’s session as the Federal Deposit Insurance Commission eased some of Volker Rule restrictions.  The traditional safe havens, like Utilities, are the worst performers.

Breadth is positive and new highs outpace new lows.

GDP

First quarter real gross domestic product (GDP) had a sharp decline to an annual rate of 5%, according to the "third" estimate released by the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 2.1 percent.

Real GDP: Percent change from preceding quarter, Q1 2020 (3rd)

In the third estimate, nonresidential fixed investment, federal government spending, and state and local government spending was revised upward but offset by downward revisions to private inventory investment, personal consumption expenditures (PCE), and exports.

Durable Goods

Durable Goods Order on the other hand was a different story.  May rose 15.8% following a revised decline of 18.1% in April.  Excluding transportation, orders increased 4% from a revised -8.2% in April. New orders were higher in almost every category, with an 80.7% increase to $46.9 billion from $20.9 billion in transportation equipment orders.

• Machinery orders were up 1.1% after an 8.0% decline in April
• Primary metals order rose 9.1% after declining 14.3% in April
• Shipments of nondefense capital goods increased 1.8% after declining 6.2% decline in April

Nondefense capital goods orders/business inventory, excluding aircraft, which is viewed as a proxy for business spending, rose 2.3% following a drop of 6.5% decline in April.