Daily Market Color April 27, 2021Commodities Index Hits Three Year High Commodities hit three year high as yields increase As investors sift through more corporate earnings, both the S&P and Nasdaq closed below recent record highs decreasing 0.21% and 0.34%, respectively. The continuation of strong corporate earnings and expanding vaccinations in the U.S. increased yields across the curve with the 10y closing 1bp higher to 1.58%. Investors growing optimism of economic growth prospects also drove commodities to a three-year high during trading driven by increases in copper and oil. Housing prices hit 15-year high In February, tight inventory and low interest rates drove U.S. housing prices to their highest level in 15 years. The S&P CoreLogic Case-Shiller index increased 12% year over year in February, the largest jump in prices since 2006. Manufacturing prices continue to soar U.S. manufacturers continue to see soaring material costs in the month of April. Data from the Federal Reserve banks in New York, Kansas City, and Dallas have all reported record high prices in April with a diverse selection of commodities seeing the pricing pressures. The Institute of Supply Management’s March survey revealed that 72% of manufacturers have reported paying higher prices.
