Yesterday's Fed announcement was categorized by many as a non-event. The first paragraph of the Fed statement contained a few notable changes, but the overall message is very much the same. The fed used the words "transitory factors" when noting the weakness in the economics data recently. This offset the bearish tone of the data, suggesting that we had a few blips that will be corrected in the coming months. June seems to be all but taken off the table for a rate hike, while September remains a possibility given a solid rebound in the spring/summer.

This morning the drop in jobless claims and continuing claims have the market continuing yesterday's sell off. Jobless Claims came in at 262K with a prior print of 296k, and Continuing Claims came in 2253K, with prior 2327k. Substantial improvements in the labor market will be viewed as adding weight to a September rate hike, and will put confidence back in equities moving money out of treasuries. Next week brings Non-Farm Payrolls, which will tell us if last month's low print was just a blip, or a sign of a weakening labor market.