Late in the session, reports of the U.S. withdrawing some diplomats and families from Iraq were signs that nuclear negotiations were breaking down. The drumbeats of confrontation are growing louder.

Gusher

The reports sent crude oil rocketing higher.

Yesterday, equities were hit across the board.

It was all good at the start of the session:

• There is good news on the tariff front (check).
• There is good news on the inflation front (check).

On paper, it was an ideal day, but the session ended with a thud after geopolitical news, which drove Energy (XLE) higher. There was also a sell-on-the-news element at the session.

Eclectic leaderboard referencing company-specific stories and industry narratives.

Anxiety Creep

The rally has been impressive, but it's running out of catalysts. There aren’t many “cheap” stocks out there. In this environment, we can stretch the parameters and weigh more momentum and behavior, but pullbacks are best for creating value.

There is natural anxiety that comes with retesting all-time highs.

The S&P 500 (SPX) and NASDAQ-100 (NDX) are still in strong uptrends.

Bond Buyers Off Endangered Species List

We keep hearing it’s the end of ‘American Exceptionalism,’ and nobody wants to buy our bonds. Buyers showed up yesterday for a ten-year auction. The yield is 4.421%, down from when it was issued at 4.428%, and the indirect bids are 71.6%.

Now, all eyes are on today’s 30-year auction.

Today’s Session

Producer prices edged higher, but less than expected. That means there will be no additional reporting on the topic today.

Month to Month

• PPI 0.1%; Exp. 0.2%
• PPI Core 0.1%; Exp. 0.3%

Year over Year

• PPI 2.6%; Exp. 2.6%
• PPI Core 3.0%; Exp. 3.1%

It’s very encouraging news no matter how much the experts will poke holes.

Prayers to the victims and their families of the India Air crash.

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