The stock market didn't rally sharply but it didn't reverse, posting a slight gain but one on top of yesterday's giant surge. The S&P 500, which gained 6.5 percent yesterday, rose 0.2 percent to end at 721.36. Bank shares were once again big winners including JP Morgan, up 5% at $20.42 after saying that it too, like Citigroup, is posting a profit so far this year.
Money moved out of the safety of the dollar which fell nearly 2 cents against the euro to end at $1.2852. But money moved into the Treasury market following strong demand at the month's 10-year note auction. The 10-year yield fell 11 basis points to 2.89 percent. The Treasury, in its endless blizzard of offerings tied to the government's surging debt, auctions $11 billion of 30-year bonds tomorrow. Treasury budget data during the session shows the federal deficit, only five months into the fiscal year, at more than $750 billion.
A rise in weekly crude inventories helped push oil lower with April WTI down 6% on the day at $42.94. Gold edged 1% higher to $904.30.