After Thursday’s release of a larger-than-expected increase in U.S. CPI for May, the June University of Michigan consumer confidence survey released Friday showed an unexpectedly significant decline in inflation expectations over the next year from May, as investors continue to weigh the outlook for inflation and the future path of the Fed’s withdrawal of monetary accommodation. 10-year U.S. bond yields recovered slightly after hitting another three-month low, still near a three-month trough. The dollar index rallied, approaching a one-month high.
While U.S. stocks continued to receive upside support from some leading technology stocks such as Apple, the real estate and energy sectors fell and biotech stocks led by Vertex exerted downward pressure. The Dow opened lower in early trading, with the S&P falling to record highs and the Nasdaq having turned lower briefly during the session, eventually closing up collectively by virtue of a late rally, but the Dow failed to extend its single-week cumulative gain.
The S&P was up by the end of the day, but the Dow failed to extend its one-week rally. biopharmaceutical company Vertex discontinued its development trial of a drug for alpha-1 antitrypsin deficiency (AATD), a rare genetic liver disease, saying the experimental drug was insufficient to provide significant efficacy. shares of Vertex jumped 10% lower and fell nearly 11% intraday. The Nasdaq Biotechnology Index (NBI) fell as much as 1.4% intraday.
Small-cap stocks reversed two consecutive days of underperformance to outperform the broader market overall for the week. Some of the retail holdout stocks that plunged on Thursday continued to fluctuate sharply, mostly closing higher: GameStop (GME), which fell more than 20% on Thursday, had risen more than 9% in early trading on Friday, turned down at the end of the morning session, but turned up again at midday; AMC Theatres, which turned down mid-day on Thursday and had fallen more than 10%, turned down only briefly at the beginning of the session, and has since moved up, rising more than 10% at midday; Clover, which had fallen more than 10% on Thursday Health (CLOV) was down more than 6% at the beginning of the session, turned up in early trading, and expanded to more than 7% at midday. Clean Energy Fuels (CLNE), which had fallen 18 percent on Thursday, rose more than 2 percent at the beginning of the session, then quickly turned down, once down 3.6 percent.
Among Chinese stocks, BOSS Direct Employment doubled on its first day in the U.S., raising $912 million in its IPO at an estimated offering price at the high end of its target range, with an estimated market value of more than $17 billion at the closing price, making it the highest valued recruitment platform in China.
In commodities, crude oil futures continue to set new highs for at least two years, with U.S. oil approaching $71; a new report from the International Energy Agency (IEA) expects global oil demand to return to pre-new crown outbreak levels by the end of next year; U.S. lumber futures hit the largest one-week decline in history, with commentary suggesting there is a large supply and willingness to sell on the part of sellers, but suffering from buyer caution and a lack of urgency; and a higher dollar Under pressure from a higher dollar, gold fell to a week-long low and was down for the week; most base metals, including copper, rebounded and were up for the week.
Several cryptocurrencies accumulated double-digit losses for the week, while bitcoin held the $37,000 barrier on Friday, retaining its cumulative gains for the week and becoming one of the very few mainstream cryptocurrencies that still accumulated gains for the week.
In European markets, European stocks were led higher by mining and auto stocks, with the pan-European stock index closing at a record high for the sixth straight day and surging this week, while German stocks closed higher for the first time this week, but failed to continue their cumulative gains for the full week. Commenting on the performance of the ECB meeting on Thursday in postponing the tapering of QE bond purchases as much as possible, European government bond prices continued to rise and yields fell further, continuing to accumulate declines throughout the week.
The S&P hit a new record high with small-cap stock indexes up 1% and the Dow ended a two-week streak of gains AMC-led retail holdout stocks rallied and BOSS Direct surged 96% on its first day
The three major U.S. stock indexes were mixed, with the S&P 500 and the Dow Jones Industrial Average opening higher and turning lower in early trading. The S&P was up more than 0.2% at the beginning of the session when it approached the intraday high set on Thursday to set a new high, and was down 0.16% at midday when it set a new daily low. The Dow rose more than 150 points at the beginning of the session to a new daily high, and fell nearly 140 points at midday to a new intraday low since May 26. Nasdaq composite index in the early and midday trading had a short turn down, but most of the time to retain the gains.
The three major indices pulled up collectively at the end of the day, with the S&P and Dow turning up one after another, with the Nasdaq hitting a new intraday high since April 30 and eventually closing up collectively for the second consecutive day.
The S&P closed up 0.19% at 4247.44 points, a new closing high for the second consecutive day. The Nasdaq closed up 0.35% at 14,069.42 points, closing at a new high for the second consecutive day since April 29, following Tuesday’s third day this week at a new high since late April. The Dow closed up 13.36 points, or 0.04%, at 34,479.60, further off the closing low set on Wednesday since May 26.
Small-cap stocks outperformed the broader market for the first time in the last three days, with the value-cap-dominated small-cap index Russell 2000 maintaining gains throughout the day, closing up 1.06%, well ahead of the three major stock indexes. The technology-heavy Nasdaq 100 index closed up 0.27%.
This week, the main stock index only the Dow accumulated losses, the Dow fell 0.8%, ending a two-week streak, the S&P rose 0.41%, up three weeks in a row, the Nasdaq rose 1.85%; Russell 2000 rose 2.16%, leading the broader market, up three weeks in a row, the Nasdaq 100 rose 1.65%, and the Nasdaq were up four weeks in a row.
S&P 500 of the 11 major sectors, Friday only fell nearly 0.6% of real estate, down nearly 0.4% of energy and down 0.2% of materials 3 closed down, telecommunications services closed flat, 7 closed up in the sector, up more than 1% of non-essential consumer goods and up more than 0.9% of health care rose to the top, the bottom of the rise is less than 0.1% of essential consumer goods. The week’s best performance is health care, followed by technology, the worst performance is the financial, the second to last place is materials.
Dow components, American Express, Goldman Sachs rose more than 1%, Caterpillar fell more than 2%, Johnson & Johnson, United Health fell more than 1%.
Leading technology stocks rose and fell, Tesla fell slightly by 0.04%. FAANMG six major technology stocks, up nearly 1% of Apple’s best performance, Microsoft rose 0.25%, Nifty rose 0.3%, while Facebook fell nearly 0.4%, Google parent company Alphabet fell 0.2%, Amazon fell slightly by 0.08%.
The Nasdaq Biotechnology Index (NBI) closed down 0.74%, and Vertex closed down nearly 11%. Chip stocks were mostly higher, with the semiconductor sector ETF SOXX up 0.5% and Hynix Semiconductor up 12%. Zoom rose more than 5%, with Zoom listed as a top pick by RBC analysts on Friday with a $450 price target that forecasts Zoom to rise 30% over the next 12 months from this Thursday’s close.
Among retail huggers, GameStop (GME), which closed down more than 27% on Thursday for its biggest drop since March 24, closed up nearly 5.9%, AMC Theatres, which closed down more than 13% on Thursday, closed up 15.4%, and Koss Electronics (KOSS), which fell more than 6% on Thursday, closed up 2.7%.
Among the popular retail holdout stocks in the last three days, GEO Group (GEO), which closed down nearly 20% on Thursday, closed up nearly 5%, Clover Health (CLOV), which closed down more than 15% on Thursday, closed up 4.8%, while Clean Energy Fuels (CLNE), which closed down 15.6% on Thursday, closed down 1.7%.
Among the Chinese stocks, BOSS Direct Recruitment closed up nearly 96% on its first day of trading, while Zhihu rose more than 14% and Tiger Securities rose 11%. Chinese new energy vehicle concept stocks rose, with Tucson Future up more than 10%, Xiaopeng Auto up more than 7%, Weilai Auto up more than 6%, and Ideal Auto up 4%. And education stocks fell in general, high way, 51Talk fell more than 9%, good future fell nearly 6%, Netease Youdao fell more than 3%, New Oriental fell nearly 2%. In addition, Tencent ADR, Baidu, Jindo fell 1%, Alibaba fell nearly 0.7%.
In Europe, the pan-European stock index rose for six days in a row, and the Euro Stoxx 600 index reached a record high for six days in a row. Individual stocks, London-listed mining giants BHP Billiton, Rio Tinto, Anglo American Energy are up more than 1%, driving mining stocks in the sector based on resources rose more than 1.9%, leading the broader market. Major European stock indexes rose across the board, German stocks ended a four-day losing streak, and French stocks hit a new high in nearly 21 years on the fourth day of the week.
The Stock Exchange 600 rose 1.09% for the week, up four weeks in a row and the largest single-week gain since the week of May 7. All national stock indices accumulated gains, except for German stocks, which closed roughly flat. Although the basic resources sector was high on Friday, it fell more than 1% for the week, and the best performer for the week was health care, which rose more than 4%.
The 10-year U.S. bond yield posted its biggest weekly decline in a year, falling below 1.43% to another three-month low during the session
The U.S. 10-year benchmark Treasury yield had fallen below 1.43% to 1.428% during the European session, hitting a new intraday low for two consecutive days since early March, and has continued to rebound since then, with U.S. stocks rebounding to 1.46% in early trading and once rising above 1.47% to a new daily high by the time U.S. stocks closed at about 1.45%, up 2 basis points during the day. For the week, the 10-year U.S. bond yield fell slightly more than 10 basis points cumulatively, the largest single-week decline since the week of June 12 last year and four consecutive weeks of cumulative declines.
The market’s inflation expectations indicator – the 10-year flat inflation rate, measured by the spread between the 10-year U.S. Treasury note and the inflation-protected Treasury note (TIPS) over the same period – fell significantly this week, the largest one-week decline since April last year.
Most European government bond prices rose for four days in a row, with British bonds rebounding from Thursday’s retreat and the biggest yield drop among countries in the marginal zone of Greece, down 6.5 basis points on the day. British 10-year benchmark government bond yields fell 3.9 basis points during the day to 0.708%; German government bond yields fell 1.8 basis points to -0.274% during the same period. This week, British bond yields fell by 8.2 basis points, German bond yields fell by 6.1 basis points, a four-week decline.
The U.S. dollar index hit a one-week high approaching a month ago highs Many cryptocurrencies fell more than 10% this week, but bitcoin accumulated gains
The ICE Dollar Index (DXY), which tracks the exchange rate of a basket of six major currencies, fell below 89.96 to 89.957 before the European session to set a new daily low, down more than 0.1% during the day. European stocks continued to move up after the opening bell, turning up in early trading, and U.S. stocks rose above 90.60 at midday, approaching the intraday high set on Friday when they rose above 90.60 since May 13, up nearly 0.6% during the day.
By Friday’s U.S. stock market close, the dollar index was slightly below 90.50, up nearly 0.5% intraday, up more than 0.4% for the week, up three weeks in a row, up significantly more than the previous two weeks of slight cumulative gains; the Bloomberg Dollar Spot Index rose 0.5%.
After rising above $38,000 on Thursday to hit a new intraday high since Friday, bitcoin (BTC) volatility eased on Friday, European shares rose above $37,600 when it set a new daily high during the day, up more than $1,000 from the intraday low in early Asian trading, the U.S. shares closed above $37,300, up more than 2% in the last 24 hours.
Ether (ETH), the second-largest cryptocurrency by market capitalization after Bitcoin, continued its downside in Friday’s European and U.S. sessions, closing the U.S. session slightly below $2,400 and down nearly 2% in 24 hours.
CoinMarketCap data shows that most mainstream cryptocurrencies continued to fall on Friday, with Cardano (ADA), the fifth largest cryptocurrency by market capitalization, down nearly 4% in the last 24 hours, Bitcoin Cash (BCH), the 11th largest cryptocurrency, down more than 1%, and Ripple (XRP) and Dogcoin (DOGE), the seventh and sixth largest cryptocurrencies, down more than 0.8% and 0.5%, respectively, but the fourth largest cryptocurrency, BNB, rose 2% and the 12th largest cryptocurrency, Litecoin (LTC), gained more than 0.4%.
Most cryptocurrencies have accumulated losses this week, with DOGE down nearly 15.6% in the last seven days, ADA down more than 15.5%, BCH down nearly 13%, XRP down more than 12.3%, ETH down 11%, BNB down nearly 10.2%, and LTC down more than 8.2%, but BTC up about 1% cumulatively.
U.S. oil hit a two-and-a-half-year high three times this week Natural gas rose more than 6% in a week Lumber fell more than 17% in a week for the biggest drop in history
International crude oil futures closed higher for the second consecutive day, hitting a new high in at least two years for the third day this week.
U.S. WTI July crude oil futures closed up 0.88 percent at $70.91 per barrel, setting a new closing high for the main contract since Oct. 16, 2018, set on Tuesday for the second consecutive day and third day this week above $70. Brent August crude oil futures closed up 0.23% at $72.69 per barrel, a new closing high for the main contract since April 30, 2019, and a new high since May 16, 2019, set on both Tuesday and Thursday of this week.
U.S. oil rose 1.85% for the week, and buoyant oil rose 1.11%, up three weeks in a row, the sixth cumulative gain in the last seven weeks, but not as much as last week, when U.S. oil and buoyant oil rose 4.97% and 4.6%, respectively.
NYMEX July natural gas futures closed up 4.7% at $3.30 per million British thermal units, a new high since Oct. 30 last year, after rising 6.4% for the week.
CBOT softwood futures fell 5.61% to $1,059.20 per 1,000 board feet, down 17.52% for the week, with the main contract futures posting their biggest one-week decline since data records began in 1986 and now retracing about 40% from the all-time high recorded on May 10.
Copper regained $10,000 for the first time in more than a week, while tin hit a 10-year high for the second time this week and rose for the fourth week in a row. Gold hit a new low for more than a week and the biggest drop in the same period, falling for two weeks in a row.
London base metals futures rebounded on Friday, except for aluminum and nickel, which ended a three-day streak of gains and fell to a three-month high since this month and more than three months, respectively. Copper closed at $10,004 per tonne, regaining the $10,000 mark for the first time since last Wednesday, June 2. Zinc and aluminum also hit new one-week highs. Lun tin closed at $31,570/ton, the second day of the week after Tuesday to a new ten-year high.
All base metals rose this week, with copper up 0.49% for the week, and aluminum and zinc erased some of last week’s losses, lead erased all of last week’s losses, and tin rose for four consecutive weeks. New York copper futures also rebounded, closing up 1.2% on Friday, up about 0.2% for the week.
In precious metals, New York gold futures ended a two-day streak of gains, not only failed to get close to the $1,900 mark again, but fell below $1,880, and failed to accumulate gains for the week because of Friday’s decline.
COMEX August gold futures closed down 0.9% at $1879.60 per ounce, a new low since last Wednesday, June 3, and the largest closing decline since June 3. This cycle gold fell about 0.7%, down two weeks in a row.
New York silver futures rose for three days in a row, COMEX July silver futures closed up 0.4%, up 0.9% for the week, erasing last week’s cumulative losses.
Platinum ended a three-day losing streak, closing up nearly 0.5% on Friday, out of the trough hit on Thursday since March 5, the main contract closing low, still down 1.1% for the week, down two weeks in a row. Palladium rose for two days in a row, closing up 0.1% on Friday, down 2.2% for the week, ending a two-week winning streak.
From the cumulative gains and losses, gold, silver, copper and oil in the four major commodities, gold futures this week, the worst performance, crude oil performed the best.
Recent Comments