GOOD MORNING! In a wild, volatile session that saw Treasury yields swing up and down. The initial direction for yields was up as wholesale prices flashed another inflation warning. The April Producer Price Index (PPI) rose by a stronger-than-expected 1.4%, lifting the year-over-year (y/y) to 6.0% from an upward revised 4.3% in March. Excluding food and energy, core PPI rose by 1% last month, bringing its y/y % to 5.2% last month, up from an also upward revised 4.0% the prior month. Later, leveraged funds jumped in on the buy-side, thinking the market fell too far, too fast and pushed yields back down. They slightly reversed course again after a tepid 30-year T-bond auction but were supported on relief from supply. The benchmark equity indices were mixed with investors traders favoring the S&P and tech-heavy indexes and pushing them to new record highs while punting the Dow. Finally, the Senate passed naming Kevin Warsh as the new Chaiman of the Federal Reserve Board. It wasn’t an overwhelming majority.

     The markets are starting the day with a risk-on sentiment, even while the price of oil remains steady. It may be due to optimism of President Trump and China’s President Xi meeting as no other catalyst is visible. Stock index futures and Treasury prices are up moderately. This come ahead of a triple play of data. An hour before the opening bell on stock exchanges the latest weekly jobless claims, April’s retail sales and import/export price indices will be released.