U.S. new non-farm payrolls in May were lower than expected, and average hourly earnings rose more than expected. Commentary that the May nonfarm payrolls data still show a significant improvement in employment compared to the far weaker-than-expected April, but not good enough for the Fed to quickly begin discussing QE tapering, somewhat easing market concerns that the Fed may discuss tapering (Taper) at this month’s meeting. The Cleveland Fed president has since also said that job growth was solid in May, but there is room for further recovery and does not meet the Fed’s criteria for withdrawing super-easing.
After the release of the non-farm payrolls data, the dollar index dived intraday, U.S. bond prices rebounded and yields turned down, with the 10-year U.S. bond yield quickly falling 1.60% to an intraday low of more than a week; the dollar index; U.S. stocks swept Thursday’s slump, led by rebounding technology stocks such as Tesla, Microsoft and Apple, with the three major stock indexes rising collectively to round out the closing day of the first week of June. Pan-European stock indexes also hit record highs three times this week led by technology stocks led by AMS, and most major European and American stock indexes continued to accumulate gains throughout the week.
Retail holdings were mixed, with overall volatility less than the high Wednesday and plunging Thursday. Thursday’s intraday decline of more than 40% after having a short turn up AMC at the end of the morning session to set a new daily high, up 12% during the day, turned down at lunchtime, down 10% at one point; Goss Electronics (KOSS), Express and GameStop (GME) continued to fall. However, AMC still had cumulative gains of more than 80 throughout the week, with KOSS, Express and GME up at least 10% for the week.
Among the more volatile stocks, hedge fund bigwig Bill Ackman’s special purpose acquisition company (SPAC) Pershing Square Tontine Holdings (PSTH) jumped lower, down more than 10%. PSTH said it was in talks to buy a 10% stake in Universal Music, the world’s largest record label, for about $4 billion, saying Square jumped intraday, expanding from about 0.3% to more than 2.6% in just about 10 minutes, after the division’s CEO said he was considering launching a bitcoin wallet that would allow cryptocurrency holders and buyers to hold their own funds in escrow and not have to hand them over to exchanges.
Precious metals such as gold and most industrial metals such as copper rallied, fueled by a retreating dollar, and crude oil, which fell slightly on Thursday, resumed its momentum to set a new two-year high. This week, gold, silver and copper all accumulated losses, but crude oil rose more than 4%. OPEC + meeting this week decided to gradually scale up production cuts as planned to increase production when bullish on demand recovery, but comments that demand is not certain. This week’s higher crude oil is still largely thanks to, investors are betting that a recovery in demand this summer will prompt tighter crude oil supplies.
Nasdaq hits biggest gain in two weeks S&P hits second highest on Tuesday Tesla up over 4% to lead leading tech stocks AMC down over 6% but up over 80% for the week
The three major U.S. stock indexes opened higher, led by the Nasdaq Composite Index, which had risen more than 1 percent in early trading and was up more than 1.5 percent at a new daily high at midday. S&P 500 index rose above 4220 points in midday trading, approaching the highest intraday record set on May 7 by rising above 4230 points, up nearly 1% at one point during the day. The Dow Jones Industrial Average rose more than 190 points at midday when it set a new intraday high since May 10.
In the end, the three major indices collectively closed higher. The Nasdaq closed up 1.47% at 13,814.49 points, refreshing the closing high set on Wednesday since May 3, the largest closing gain since May 20, erasing Thursday’s 1% drop set by the largest closing loss since May 12. The S&P 500 closed up 0.88% at 4229.89, a new record high set this week, just 0.06% off the May 7 closing all-time high. The Dow closed up 179.35 points, or 0.52%, at 34,756.39, a new closing high set on Wednesday since May 10, the fifth of the last six trading days to a new high since May 10.
The value-cap-dominated small-cap index Russell 2000 closed up 0.31%, underperforming the broader market, which had turned down briefly during the session. The technology-heavy Nasdaq 100 closed up 1.78%, outperforming the broader market.
This week, the three major indices continue to accumulate gains, the Dow accumulated 0.66%, the S&P accumulated 0.61%, both up two weeks, the Nasdaq accumulated 0.48%; Russell 2000 accumulated 0.77%, up two weeks; Nasdaq 100 accumulated 0.62%, and the Nasdaq were up three weeks in a row.
S&P 500 of the 11 major sectors, Friday only down 0.15% of the utilities a closed down, up in the sector, up more than 1.9% of information technology led the way, showing the trend of technology stocks to lead the broader market, telecommunications services also rose more than 1%, the top gainers, the bottom of the rise is up more than 0.1% of real estate and up nearly 0.2% of materials.
Leading technology stocks rallied, Tesla, which fell more than 5% on Thursday, closed up more than 4% to lead; FAANMG six major technology stocks, Microsoft rose 2%, Google parent company Alphabet rose nearly 2%, Apple rose 1.9%, Nifty, Facebook rose more than 1%, Amazon rose 0.6%.
Among the retail holdouts that plunged on Thursday, AMC Theatres, which closed down nearly 18% on Thursday, closed down 6.6%, up more than 83% for the week; Goss Electronics (KOSS), which closed down more than 24% on Thursday, closed down 12.6% on Friday, up 16.8% for the week; Express, which closed down nearly 20% on Thursday, fell nearly 8% intraday and closed down 5.9%, up 15% for the week; Games, which closed down more than 8% on Thursday Stagecoach (GME) turned lower intraday, down nearly 3% at a new daily low, closing down more than 3.2%, up nearly 11.9% cumulatively for the week.
Chip stocks rose in general, with semiconductor sector ETF SOXX up more than 2% and Nvidia up more than 3%. Among the more volatile stocks, Ackman’s SPAC Pershing Square Tontine Holdings (PSTH) closed down more than 11.9%; Square closed up 1%.
Most of the popular Chinese stocks rose, Chinese ETF CQQQ and KWEB over 1% and nearly 0.8%, respectively; Doodle Smart rose 15%, Monster Charge rose over 11%, Tiger Securities rose over 7%, Akiyo rose 5%, Beili Beili, Xiaopeng car rose over 3%.
In Europe, the pan-European stock index Euro Stoxx 600 index closed at a record high for the third day this week, the German stock index closed at a record high for the fourth consecutive day, announced the sale of the North American digital systems business of Austrian chip maker AMS shares jumped 4.4%, supporting the technology sector rose more than 1%, leading the broader market higher. But the banking sector fell more than 0.9% against the market, dragging Spain’s stock index to become the only European countries closed lower stock index.
This week, the Stock Exchange 600 rose for three weeks in a row, in addition to the end of a five-week streak of Western stocks, other countries this week, stock indexes are cumulative gains, German stocks and Italian stocks rose for five weeks in a row, French stocks rose for three weeks in a row, British stocks rose for two weeks. Although the auto and parts sector rose only nearly 0.2% on Friday, but this week’s cumulative gains of more than 5%, ahead of other sectors. Oil and gas and mining stocks in the basic resources rose more than 3% and 2%, respectively, the top gainers.
The U.S. dollar index dived after hitting another three-week high, and cryptocurrencies fell in unison. Dogcoin still rose more than 20% this week
The ICE dollar index (DXY), which tracks the exchange rate of a basket of six major currencies of the dollar, had risen above 90.60 approaching 90.63 before the European stock market on Friday, setting a new intraday high for the second day in a row since May 13, up more than 0.1% during the day. After the release of the non-farm payrolls data, the roughly flat dollar index fell quickly, U.S. stocks fell below 90.03 in early trading to 90.026 to refresh the daily low, down more than 0.5% during the day.
By Friday’s U.S. stock market close, the dollar index was above 90.10 at 90.12, down more than 0.4% intraday, up a modest cumulative total of about 0.08% for the week and up slightly for the second week in a row; the Bloomberg Dollar Spot Index fell 0.5%.
Bitcoin (BTC) was above $39,000 in early Asian trading, close to the one-week high set on Thursday, and has since continued to move lower, falling below $35,600 during the European session, down more than $3,000 from the intraday high, a percentage drop of about 10%, and closing below $37,000 in the U.S., down more than 4% in the last 24 hours.
Ether (ETH), the second-largest cryptocurrency by market capitalization after Bitcoin, fell to around $2,550 during the European session, down more than 10% from its intraday high in early Asian trading, and closed the U.S. session below $2,700, down nearly 4% in the last 24 hours.
CoinMarketCap data shows that mainstream cryptocurrencies retreated collectively on Friday, with the 14th largest cryptocurrency by market capitalization, Litecoin (LTC), and the seventh largest cryptocurrency, Ripple (XRP), both down nearly 6% in the last 24 hours, and the 12th, fifth and fourth largest cryptocurrencies, Bitcoin Cash (BCH), Cardano (ADA) and Coinancoin ( BNB) fell more than 5%, and the sixth largest cryptocurrency, Dogcoin (DOGE), fell more than 3%.
Most cryptocurrencies accumulated gains this week, with DOGE accumulating 20.8% in the last seven days, the best performance, BNB up nearly 17.6%, ETH up more than 7.3%, XRP up nearly 7.3%, BTC up more than 2.6%, while BCH down nearly 4.5% and LTC down nearly 1.9%.
10-year U.S. bond yields drop 7 basis points to a new low of more than a week
European Treasuries mostly rebounded in price on Friday, with yields falling back, led by a drop in British bond yields, which led Thursday’s gains. British 10-year benchmark Treasury yields fell 5.1 basis points to 0.790% during the day; German bund yields fell 3 basis points to -0.213% during the same period. This week, British bond yields fell by 0.5 basis points in aggregate, and German bond yields fell by 3 basis points in aggregate.
After the release of the May non-farm payrolls report, the U.S. 10-year benchmark Treasury yield, which was originally at 1.63% above, has fallen to below 1.60% before the U.S. stock market, the U.S. stock market continued to move down after the opening, fell to below 1.56% at lunchtime, hitting a new intraday low since last Wednesday, May 26, down more than 7 basis points during the day, to the U.S. stock market at the close of business is still slightly below 1.56%, the cumulative decline of about 3 basis points for the week basis points.
Crude oil hits at least two-year highs for three days this week, up two weeks in a row
International crude oil futures rallied, closing up more than 1% for the week, except for Thursday, with a cumulative gain of more than 4% for the week.
U.S. WTI July crude oil futures closed up $0.81, or 1.18%, at $69.62/barrel, a new closing high for the main contract since Oct. 17, 2018, and a new high since the same month 22 for two consecutive days as of Wednesday; Brent August crude oil futures closed up $0.58, or 0.81%, at $71.89/barrel, refreshing the 2019 record set on Wednesday May 21 since the main contract closed at a new high, Tuesday closed at a new high since the same month 22. U.S. oil rose 4.97 percent for the week, while buoyant oil rose 4.6 percent for a second straight week of gains and the fifth cumulative gain in the last six weeks.
Gold out of more than two weeks trough to hit the biggest gains in nearly three weeks, still a full week of cumulative losses to end a four-week winning streak
Precious metals rallied across the board, but New York gold futures failed to regain the $1,900 mark. COMEX August gold futures closed up 1.0% at $1,892.00 per ounce, the largest closing gain since May 17, off the May 18 closing low for the main contract set on Thursday. Gold is still down about 0.7% for the cycle, ending a four-week streak of gains that stemmed from Thursday’s 1.9% plunge, the largest decline in the main contract close since Feb. 26.
New York silver futures came out of the May 14 trough hit on Thursday and closed up 1.5% on Friday, failing to regain $28. It was down about 0.4% for the week, ending a two-week winning streak, mainly due to a 2.58% drop on Thursday, the biggest closing decline since March 4.
Platinum ended a two-day losing streak, closing up 0.2%, coming off a low hit on Thursday since April 13, but still down 1.5% for the week, wiping out all of last week’s gains. Palladium out of the May 26 low hit on Thursday, NYMEX September palladium futures closed up nearly 0.6% at $2842.2 per ounce, up about 0.4% for the week, up two weeks in a row.
Lund copper ended three consecutive losses but failed to recover $10,000 for the week fell nearly 3% Lund tin hit a ten-year high for the second time this week for three consecutive weeks
London base metals futures rebounded on Friday, except for lead, which fell for two days in a row, falling further away from two-week highs. Copper and aluminum ended a three-day losing streak, with copper closing at $9,955 per tonne, coming off a closing low set on Thursday since April 26, but failing to regain the $10,000 mark, closing below $10,000 for the second day in a row, while aluminum said goodbye to a one-week low. LUN tin regained US$30,000 to close at US$30,865/ton, a new ten-year high after Wednesday. Lunzinc approached a three-year high.
This week, the base metals in addition to the cumulative decline in all of the Lun tin, Lun tin cumulative rise of about 0.4%, up three weeks in a row. Last week just ended a two-week losing streak of copper, aluminum and nickel to give back some of last week’s gains. Lead and zinc ended a two-week streak of gains. Copper fell nearly 3%, leading the decline in base metals.