European and US stocks were narrowly mixed ahead of the European Central Bank meeting and US CPI data. European stocks were higher supported by healthcare and travel stocks, but mining stocks bucked the market lead after China announced the fastest year-over-year growth in PPI since October 2008. In the U.S., most blue-chip technology stocks such as Microsoft and Amazon rose, supporting the Nasdaq to lead the three major stock indexes, but the blue-chip technology stocks generally retreated at the end of the day, either giving back gains or expanding losses, and the Nasdaq eventually turned lower.
The results of Wednesday’s $38 billion tender sale of 10-year U.S. Treasuries showed strong demand, with subscriptions hitting a one-year high. The secondary market 10-year U.S. bond yield maintained its downward momentum, falling below 1.50% intraday for the first time in a month. Bank stocks were lower as U.S. bond yields accelerated lower and the financial sector became the main force weighing on the S&P’s record highs.
Small-cap stocks ended two consecutive days of momentum to outperform the broader market. U.S. retail investors “like new and old,” the rapid turnover of hot and cold small-cap stocks. GEO Group (GEO), a real estate investment agency that invests in private prisons, rose more than 70% during the day on Wednesday, and natural gas supplier Clean Energy Fuels (CLNE) rose more than 46% during the day, with short positions of more than 10% in Atomera (ATOM), Cleveland-Cliffs (CLF) and Clovis Oncology (CLVS) were all up at least 10%. Health insurance startup Clover Health (CLOV), which had risen more than 100% in Tuesday’s session, failed to hold on to its gains, having risen about 30% early in the session but turning lower in early trading, down nearly 20% at one point.
GameStop (GME), which had soared more than tenfold in January, closed higher, but GME shares plunged more than 10% after hours after disclosing in an after-hours earnings release that the SEC was investigating trading activity in the division’s securities and that the SEC had requested information.
Bitcoin jumped intraday after El Salvador became the first country to use bitcoin as legal tender, rising more than $1,500 in about 20 minutes and expanding to more than 10% intraday, leading cryptocurrencies higher and driving blockchain concept stocks and Coinbase, the largest U.S. cryptocurrency exchange, higher.
In commodities, the U.S. Energy Information Administration (EIA) released last week’s EIA crude oil inventories fell for the third week in a row, but gasoline inventories rose much more than expected to 7.04 million barrels, U.S. crude oil futures lost the $70 mark; supported by the decline in U.S. bond yields, precious metals gold and silver both rebounded, but gold futures failed to recover the $1,900 mark; the dollar index had turned down during the day, most base metals such as copper rebounded, but copper failed to regained $10,000, New York copper futures fell.
The Dow hit a two-week low with three consecutive negative indices, and the Nasdaq turned down at the end of the day still close to one-month highs Financial sector led the way as the S&P fell away from its second highest two new retailer favorites rose more than 30%
The three major U.S. stock indexes performed differently, with the Nasdaq Composite Index, which is supported by technology stocks, performing relatively best and the Dow Jones Industrial Average, which opened slightly lower by less than 30 points, performing the worst. The S&P 500 and the Nasdaq both opened higher. The S&P hit the second highest intraday high in its history for the second consecutive day in early trading, second only to the intraday high set on May 7, but even when the new second highest, the intraday gain was just over 0.2%. The Nasdaq had risen above 14,000 points in early trading for the first time since May 3, the maximum intraday gain of more than 0.56%. Although the Dow had turned up in early trading, but at the end of the morning session turned down again.
The end of the three major indices collectively down, the S&P and the Nasdaq have turned down, the Dow refreshed the daily low, down 160 points, and finally closed down collectively. The Dow closed down 152.68 points, or 0.44%, at 3,447.14 points, down three days in a row and hitting a new low since May 26. The S&P closed down 0.18% at 4219.55 points, erasing Tuesday’s gains and failing to refresh the second highest ever close set on Friday. The Nasdaq closed down 0.09% at 13,911.75, ending a three-day streak of gains and edging down from the high set on Tuesday since April 30.
Small-cap stocks led the decline, reversing two consecutive days of outperformance, with the value-cap-dominated small-cap index Russell 2000 closing down 0.71%. The tech-heavy Nasdaq 100 index edged up 0.03%.
Dow components, Mercer rose more than 2%, Johnson & Johnson, Amgen, IBM rose more than 1%; Caterpillar fell more than 2%, Boeing, American Express, Home Depot, Nike, JPMorgan Chase, WBA fell more than 1%. Of the 11 major sectors of the S&P 500, seven closed lower and four closed higher on Wednesday. Among the declining sectors, down more than 1% in the financial led the decline, followed by a decline of more than 0.7% in materials and down nearly 0.7% in industrial. The bottom of the decline was down 0.15% of telecommunications services. Up in the sector, up more than 0.8% of the utilities led, followed by more than 0.6% of health care, the smallest gain is a slight increase of less than 0.1% of information technology.
FAANMG six major technology stocks, the early turn down Facebook and Nifty closed down 1% and more than 1%; intraday gains had reached 1% of Amazon closed up more than 0.5%, Microsoft and Google parent company Alphabet rose 0.4%, Apple rose 0.3%. Tesla had risen more than 1% at the beginning of the session and turned down for the second consecutive day in early trading, closing down 0.8%.
In the last two days popular retail holdings, GEO Group (GEO) closed up more than 38%, Clean Energy Fuels (CLNE) closed up more than 31%, Atomera (ATOM), Cleveland-Cliffs (CLF) and Clovis Oncology (CLVS) closed up more than 19%, respectively , 14.5% and 10.5%; Clover Health (CLOV), which closed up nearly 86% on Wednesday, closed down 23.6%.
Among other retail holdings, AMC Theatres fell more than 10%, Koss Electronics (KOSS) fell more than 7%, and GameStop (GME) rose nearly 0.9%. After-hours GME reported fiscal first-quarter revenue above market expectations and a lower-than-expected loss per share, but at the same time disclosed an investigation by the SEC (SEC), and after-hours GME turned down and repeatedly extended its losses to more than 10%.
Benefiting from the high bitcoin, blockchain stocks rose in tandem, with Ninth City up 31%, RIOT up 11%, bitcoin mining giant Ebony International (EBON) and Kanan Technology (CAN) up 5% and 4%, respectively, and Coinbase (COIN), the first stock of cryptocurrency exchange, up nearly 1.7%.
Top Chinese stocks were mixed, with blockchain, education stocks and content stocks mostly up. Among education stocks, 51Talk rose 8%, New Oriental rose more than 5%, Good Future and High Way rose more than 2%; Palm Education, which closed up more than 40% on its first day of listing, fell more than 14% on the next day of listing. Audio and video, content stocks, interesting headlines rose 12%, Akiyay rose more than 4%, microblogging, Zhihu rose more than 2%, Tencent music rose more than 1%; Beili Beili fell 0.66%, Tiger fell more than 1%, Douyu fell more than 2%. New energy car stocks fell in general, Xiaopeng car fell nearly 4%, ideal car fell more than 3%, Weilai car fell 1.9%.
In Europe, the pan-European stock index closed higher for the fourth consecutive day, and the Euro Stoxx 600 index closed at a record high for all four days. Among the sectors, health care, which rose more than 1.9%, was far ahead, followed by travel and leisure, which rose nearly 0.9%, but mining stocks in the sector of basic resources fell nearly 1.8%, leading the market against the decline. Among the national stock indexes, German stocks fell for three consecutive days, London-listed mining giants Rio Tinto, BHP Billiton and Anglo American Energy fell more than 2%, dragging the broader British stocks lower, ending a three-day streak of gains. But the French stock index rose four days in a row, three days in a row to a new high of nearly 21 years.
European and U.S. Treasuries continue to rise 10-year U.S. bond yields fell below 1.5% for the first time in a month
European government bonds continued to rise in price on Wednesday, yields fell further, the countries in the British bond yields fell the most. The British 10-year benchmark Treasury yield fell 4 basis points to 0.730% during the day; the German bund yield fell 2 basis points to -0.244% during the same period.
U.S. bond prices also moved higher, with long bond yields leading the decline. U.S. 10-year benchmark Treasury yields continued to move lower during the European and U.S. trading sessions, with the U.S. falling below 1.50% before the bell. The U.S. had approached 1.47% to 1.472% in early trading, hitting a new intraday low for the second consecutive day since May 7, and the first intraday drop below 1.50% since May 7, to about 1.49% at the close of U.S. trading, down 5 basis points during the day.
Dollar index shakes slightly and eventually turns up Bitcoin pulls up over $1,000 in 15 minutes intraday to lead cryptocurrencies
The ICE US Dollar Index (DXY), which tracks the exchange rate of a basket of six major currencies, failed to maintain gains on Wednesday as it did on Tuesday, with a slight intraday shock, and continued to move lower after European stocks turned lower before the bell, with US stocks having fallen below 89.84 at the beginning of the session to set a new daily low, down more than 0.26% intraday, before rebounding, with US stocks turning higher in early trading, with US stocks once rising above 90.16 to 90.164 at lunchtime to set a new daily high, up about 0.1%.
By the close of U.S. stocks on Wednesday, the dollar index was at 90.15, up 0.08%; the Bloomberg Dollar Spot Index rose 0.1%.
Bitcoin (BTC) in the U.S. stock market in the morning session instantly pulled up, the BTC trading price on the Cryptocurrency Exchange in just about 15 minutes from $35,000 below once approaching $36,500, up about $1,500, the U.S. stock market at noon is up to test $37,000, compared to the early Asian session of the intra-day low rose more than $4,000, a percentage increase of more than 14%, compared to Tuesday’s intraday $31,000 mark The intraday low set since May 19 rose nearly $6,000, erasing all Tuesday’s losses back to Monday’s level. At the close of U.S. trading, BTC was above $36,200, up slightly more than 10% in the last 24 hours.
Ether (ETH), the second-largest cryptocurrency in terms of market capitalization after Bitcoin, also pulled up in early U.S. trading, with U.S. stocks rising above $2,600 at lunchtime, up more than 9% from the intra-day low, and U.S. stocks closing above $2,500, up more than 2% in 24 hours.
CoinMarketCap data show that mainstream cryptocurrencies rose across the board on Wednesday, to the U.S. stock market close, BTC’s best performance in the last 24 hours, the 13th largest cryptocurrency Litecoin (LTC) rose more than 6% in 24 hours, the fourth largest cryptocurrency by market capitalization Coin An Coin (BNB) rose 5%, the 13th largest cryptocurrency Bitcoin Cash (BCH) rose more than 4%, the seventh, fifth and sixth The seventh, fifth and sixth largest cryptocurrencies, Ripple (XRP), Cardano (ADA) and Dogcoin (DOGE), all rose more than 1%.
U.S. oil loses $70, bids farewell to two-and-a-half-year highs, buoyant oil flat at two-year high
International crude oil futures fluctuated slightly, with U.S. WTI crude oil failing to hold the psychological $70 round figure mark.
U.S. WTI July crude oil futures closed down $0.09, or 0.13%, at $69.96 per barrel last week, falling off the closing high for the main contract set on Tuesday since October 16, 2018, which was the first time since October 2018 that it closed at the $70 mark. Brent August crude oil futures closed flat at $72.22 per barrel, flattening the closing high for the main contract since May 16, 2019, set on Tuesday.
Gold, silver, copper rally Gold fails to regain $1,900 Copper fails to recover $10,000 in five days Tin holds $31,000 in ten-year highs for now
New York gold and silver futures just ended a two-day rally on Wednesday, but gold futures failed to break through the $1,900 barrier.
COMEX August gold futures all day only at the beginning of the U.S. session had a short rise above $1,900, the rest of the time were below $1,900, closing up nearly 0.1% at $1,895.50 per ounce, erasing some of Tuesday’s losses, closing down 0.2% on Tuesday before rising for two days in a row, getting rid of last Thursday’s drop below $1,880 hit since May 14 trough.
COMEX July silver futures closed up 1 percent at $28 an ounce. Platinum closed down 0.9% for a second day and palladium closed down 1.2% for a third day.
London base metals futures rose on Wednesday except for LUN tin, which rose above $31,000 for the first time in a decade on Tuesday, but held the $31,000 barrier to close at $31,209 per ton. Copper, aluminum, zinc and nickel all rose for two days in a row, and all hit a one-week high. Copper closed at $9,978 per ton, still failed to recover the $10,000 mark, closing below $10,000 for five consecutive trading days. LunLead rose for three days in a row, hitting a one-week high. But New York copper futures fell, with Comex July copper closing down nearly 0.6%, still closing above $4.50/lb.
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