Update: Chicago PMI and Markets Check (SPY, QQQ, TLT, VXX, UUP, GLD, SLV)

The Chicago Purchasing Managers Index came in much weaker than expected, printing at 52.7, less than the consensus estimate of 56.5. Markets quickly plunged on this reading, as the Chicago PMI is generally a good leading indicator for US growth as a whole. This weak reading comes on the back of other weak data this morning, including initial jobless claims, ADP employment survey, and the first quarter GDP report.The data is continuing to show a slowdown in the US economy.

Markets have dipped lower on the news, with the S%P 500 SPY falling about 8 points on the release and has continued to move lower, now down over 10 points at 1303.19. The NASDAQ QQQ has also fallen hard and is down almost 1% now at 2809.84. The VIX VXX has spiked on the news, following yesterday's 15% gain. Investors are buying protection as markets become more volatile, and the VIX is reflecting this. Bonds TLT rallied and yields fell on the news, with the benchmark 10-year yield dropping below 1.6% for the first time since World War II. The dollar index UUP is down slightly now, with a majority of the weakness being attributed to Yen strength FXY, with most other dollar crosses near flat on the day. Gold GLD and Silver SLV are both down on the news, following the risk off sentiment.