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Daily Roundup of Key US Economic Data for June 3

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ADP private payrolls rose by 122,000 in May, led by a 57,000 gain in education and health services jobs and a 36,000-jobs gain in trade, transportation and utilities.

The ISM's services index rose to 54.5 in May from 53.6 in April, with gains in the readings for production, new orders and prices, but a decline for the employment reading.

The S&P Global nonmanufacturing index was revised lower in May to 50.7 from the flash 50.9 estimate and was still below the 51.0 reading in April.

Factory new orders rose by 4.8% in April with transportation orders up 21.6% and the remaining categories combining for a 1.3% gain.

Durable goods orders were revised up to an 8% gain, while nondurable goods new orders rose by 1.4%.

Factory shipments increased by 1% and factory inventories rose by 0.3%. When combined with already-published advance estimates for retail and wholesale inventories, business inventories are on pace for a 0.5% gain in the month.

The Mortgage Bankers Association reported a 2.5% decline in mortgage applications in the week ended May 29, continuing a string of weekly declines. Refinancing activity and new home applications both declined even as mortgage rates moved lower.

Total crude oil inventories fell by 16 million barrels in the week ended May 29, with commercial oil inventories down 8million barrels and stocks in the US Strategic Petroleum Reserve down 8 million barrels. Gasoline inventories and distillate inventories both increased last week.

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US equity indexes declined while crude oil futures jumped as fresh fighting in the Middle East undermined the likelihood of a peace deal between Washington and Iran, implying the Strait of Hormuz will remain shut for the foreseeable future.The Nasdaq Composite dropped 0.9% to 26,863.1 in Wednesday's midday trading. The Dow Jones Industrial Average declined 0.8% to 50,877.8, and the S&P 500 fell 0.5% to 7,569.3.The US and Iran exchanged heavy fire on Tuesday evening after the US struck an empty oil tanker it said was attempting to breach its blockade, according to The Wall Street Journal. That set off a string of attacks by both sides, with Iran striking US bases in Kuwait and Bahrain, the WSJ reported.Kuwait came under a barrage of ballistic missiles and drones on Wednesday that shut its international airport, killed one person, and injured dozens more, the WSJ said. Iran's Revolutionary Guard said retaliatory strikes "should serve as a lesson" for the US, according to a report from Al Jazeera.President Donald Trump, in an interview released Wednesday, confirmed an earlier report that he criticized Israeli Prime Minister Benjamin Netanyahu as "crazy" in a Monday phone call, saying he was "a little bit perturbed" that Israel's fighting of Hezbollah in Lebanon was holding back peace talks with Iran, according to the Associated Press.US commercial crude oil stocks, excluding inventories in the Strategic Petroleum Reserve, declined by 8.0 million barrels in the week ended May 29 after a 3.3-million-barrel decline in the previous week, a larger drop than the 3.1-million-barrel decrease expected in a survey compiled by Bloomberg.Brent crude futures marched 2.2% higher to $98.10, and West Texas Intermediate crude oil futures added 2.6% to $96.21.Most US Treasury yields rose amid an escalation of the conflict in the Middle East, abetting inflation concerns. The 10-year jumped four basis points to 4.5%, and the two-year advanced 3.5 basis points to 4.09%.In precious metals, gold futures dropped 1.1% to $4,472.9, and silver futures slumped 2.3% to $73.82, reflecting the challenge the Federal Reserve would face in tackling supply-side price pressures.In economic news, ADP's monthly measure of private payrolls showed a 122,000 increase in May from a revised 105,000 expansion in the previous month, above expectations for an increase of 120,000 in a Bloomberg-compiled survey.The Institute for Supply Management's US services index rose to 54.5 in May from 53.6 in April, compared with expectations for 53.8 in a survey compiled by Bloomberg. The S&P Global US services index was revised downward to 50.7 in May from the 50.9 flash reading, compared with expectations for an upward revision to 51.0 in a Bloomberg-compiled survey.The Organization for Economic Co-operation and Development lowered its global economic growth projection to 2.8% for 2026, down from 2.9% in March, cautioning that the fallout from the Middle East conflict may linger even after its resolution. The OECD, however, continues to expect US economic growth at 2% this year, though it raised the estimate for next year to 1.8% from 1.7%.In company news, Macy's (M) raised its full-year outlook as fiscal Q1 earnings unexpectedly increased year over year.

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