Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.43%) is in second place on Tuesday afternoon, having followed its major average peers higher in the last half hour following the release of the Treasury's April budget from the bottom of the hour. Stocks are edging to modest highs as markets are encouraged by President Trump signaling potential de-escalation in the Russia/Ukraine conflict, a possible Iran deal, and improved U.S./China trade engagement prospects, all of which ease geopolitical risk sentiment.

The Treasury Budget for April showed a surplus of $215.0 billion compared to a surplus of $258.4 billion in the same period a year ago.

The April surplus resulted from receipts ($837.3 billion) exceeding outlays ($622.3 billion). The Treasury Budget data are not seasonally adjusted so the April surplus cannot be compared to the March deficit of $164.1 bln.

Overall, the though the government did record its typical April surplus, the top line was down 17% from a year earlier, as higher tax refunds and rising spending, including interest costs and military outlays, offset revenues. Importantly, individual tax refunds jumped 17% due to new tax breaks, while corporate tax receipts declined and corporate refunds increased. For the fiscal year to date, the deficit has narrowed 9% to $954 billion, supported by a 7% rise in receipts even as government spending increased modestly.