DJIA: 24,753.10 (+0.15%)
NASDAQ: 7,434.00 (+1.08%)
S&P 500: 2,721.00 (+0.30%)
Gold: 1,305.10 (+1.07%)
Copper: 309.60 (+1.06%)
Crude Oil: 67.51 (-5.29%)
The summary of financial developments in the notes from the Federal Open Market Committee  (FOMC) meeting for May included that the U.S. dollar was modestly higher, that U.S. equities had declined, and that Treasury yields were up a little. Factors contributing to the equities decline included concerns about the outlook for trade policy, the potential for increasing regulation for tech companies, and moderation in global growth, while higher Treasury bond yields were associated with an increase in inflation compensation that reflected firming inflation data and increasing crude oil prices. Participants noted risks and uncertainties over the medium term that included supply constraints contributing to increasing wages and prices, and potential financial imbalances that could eventually erode the sustainability of the economic expansion. Projected GDP for 2018 was revised downward slightly based on softer than expected consumer spending, but unrevised beyond 2018.
New home sales  dropped -1.5% (+11.6% Y/Y) in April to a seasonally adjusted annual rate (SAAR) of 662,000, with March’s sales revised downward to 672,000 from 694,000, and with 300,000 (+0.7%, +12.4% Y/Y) homes remaining for sale at the end of the period. Sales were highest in the South at a 355,000 SAAR, gaining +0.3% for the month and +6.0% for the year, followed by the West at a 176,000 SAAR, down -7.9% for the month and up +18.9% for the year. Sales in the Midwest were unchanged at a 91,000 SAAR, but increased +26.4% over the year, and sales increased in the Northeast by +11.1% (+5.3% Y/Y) at a 40,000 SAAR. Price ranges for homes dropped in April to 47% of all new homes being priced at or below $300,000 vs. 41% in March, but this was in line with pricing the previous April, in which 48% of all new homes were priced below $300,000.
A -27.0% drop in new orders for nondefense aircraft pulled down the overall rate of new orders for durable goods  in April to -1.7% vs. +2.7% in March. Gains in the other two transportation components, motor vehicles (+1.8%) and defense aircraft (+7.5%), narrowed the loss of transportation orders to -6.1%. Excluding transportation, new orders were up +0.9% (7.9% Y/Y), with gains for computers (+5.3%, +6.5% Y/Y), fabricated metal products (+2.0%, +11.7% Y/Y), electrical equipment and appliances (+2.6%, +4.9% Y/Y), and communications equipment (+1.6%, +4.3% Y/Y), and losses for manufacturing (-2.9%, +10.6% Y/Y), and machinery (-0.8%, +6.6% Y/Y).
Upcoming Economic Reports:
Wednesday May 30 – 2018 Q1 GDP, First Estimate
Friday Jun 1 – Employment Situation