Stay Informed and Stay Ahead: Market Watch, June 7th, 2024.
Late-Week Wall Street Market Digest
Three Key Takeaways
+ Major indices, NASDAQ, DJIA, and S&P 500 down; Tech outperforms, Utilities and Materials lag; Top Industry: Technology Hardware, Storage & Peripherals.
+Employers added 272,000 jobs, beating 182,000 forecasts. Rate cut odds for September dropped to 56% from 67%, with expectations for two cuts falling to 51% from 66%.
+Nasdaq Friday data shows a bearish sentiment with advancers to decliners at a 0.381 ratio. Natural Gas jumps and Gold Bears cash in!
Summary of Market Performance
Indices & Sectors Performance:
- Major indices, NASDAQ, DJIIA and S&P 500, down.
- 7 of 11 sectors declining: Financials/ Tech outperforms, Utilities/ Materials lag. Top Industries: Technology Hardware, Storage & Peripherals, Trading Companies & Distributors, Energy Equipment & Services.
Chart: Performance of Major Indices
Moving Average Analysis:
Economic Highlights:
- Employers added 272,000 jobs, surpassing the 182,000 forecasts. The unemployment rate rose to 4%, the highest in over two years. Rate cut odds for September dropped to 56% from 67%, and expectations for two cuts this year fell to 51% from 66%.
- Jobs Report detail view
NASDAQ Global Market Update:
- Today’s Nasdaq data shows a bearish sentiment with advancers to decliners at a 0.381 ratio.
Treasury Markets:
- Treasury yields rose, with notable increases in the 5-year and 3-year notes by 0.160%. The 30-year bond yield reached 4.554%, up 0.117%.
Market Trends:
- This week, Mega Cap Growth fell 1.1%, Large Cap Value rose 0.4%, Small Cap Value gained 0.5%, and Momentum dropped 2.1%.
Currency & Volatility:
- The CBOE Volatility Index dropped 2.86% to 12.22, the U.S. Dollar Index rose 0.80%, and the Fear & Greed Index is neutral at 45.
Commodities & ETFs:
- Commodities: Natural gas rose 4.11% to $2.937, while crude oil fell 0.29% to $75.33, Brent crude dropped 0.25% to $79.42, gold declined 3.47%, and silver dropped 6.69%.
- ETF’s: High-volume trading saw significant moves: Direxion Daily Gold Miners Bear 2X rose 13.32% with 13.7M shares, and ProShares Ultra Bloomberg Natural Gas gained 9.30% with 10.3M shares.
Cryptocurrency Update:
- Bitcoin closed at $69,187, down $111 or 0.16%. Ethereum fell 3.03%, Ripple dropped 4.40%, and all other cryptocurrencies saw declines.
Stocks:
- China Liberal Education Holdings Ltd. (CLEU) surged 58.4% with 18.2M shares, while Leafly Holdings Inc. (LFLY) rose 28.7% on high volume of 36.7M shares.
Notable Earnings:
- Inactive day, GameStop Corp (GME) falls due to earnings disappointment, prompting meme traders to pull back.
Global Markets Summary:
- Shanghai Composite edged up 0.08%, while Nikkei 225 fell marginally by 0.05%. Hang Seng dropped 0.59%, with Europe down.
In the NEWS:
Central Banking and Monetary Policy:
- Hiring and Wages are Up, Reinforcing the Economy’s Resilience – Wall Street Journal
- ECB Rate Cut Was Logical After Inflation Retreat, Nagel Says – Bloomberg
Business:
- GameStop Drops Surprise Earnings Report Into Renewed Hubbub Around Its Stock – Wall Street Journal
- Moody’s May Cut Six US Banks on Commercial Real Estate Exposure – Bloomberg
China:
- Explainer | China’s exports set to ‘defy’ tariffs: 5 takeaways from May trade data as shipments rose – South China Morning Post
