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Market Snapshot
briefing.com
| Dow | 32915.78 | +16.08 | (0.05%) | | Nasdaq | 12061.37 | +48.64 | (0.40%) | | SP 500 | 4121.43 | +12.89 | (0.31%) | | 10-yr Note |
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| | NYSE | Adv 1845 | Dec 1428 | Vol 892 mln | | Nasdaq | Adv 2327 | Dec 2352 | Vol 4.5 bln |
Industry Watch
| Strong: Communication Services, Consumer Discretionary, Financials, Utilities, Materials, Industrials |
| | Weak: Real Estate, Energy, Consumer Staples, Information Technology, Health Care |
Moving the Market
-- Reports suggest China is loosening COVID restrictions in its largest cities
-- Mega-cap stocks fade from opening highs
-- Some talk that Biden Admin. could lift tariffs on some imported Chinese goods to help ease inflation pressures
-- Volatility in oil prices as crude flirts with $120.00/bbl; nat gas futures surge 9.8%
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Closing Summary
06-Jun-22 16:15 ET
Dow +16.08 at 32915.78, Nasdaq +48.64 at 12061.37, S&P +12.89 at 4121.43
[BRIEFING.COM] A stock market that moved higher in broad-based fashion at the start of today's trading ended the day mixed in disappointing fashion. The main disappointment was the recognition that the early rally effort could not be sustained, especially coming off another week of losses last week.
Some favorable price action in the mega-cap stocks, some optimism over reports that China is loosening COVID restrictions in its largest cities, and some relief from tariff and regulatory matters fueled the initial buying interest.
Solar stocks and Chinese ADRs saw some of the biggest moves. The former were helped by a Wall Street Journal report that said the Biden Administration isn't going to institute any new tariffs on solar imports for two years. The latter got a boost from separate reports suggesting Chinese regulators are ending their probe of Didi (DIDI 2.31, +0.46, +24.9%).
The biggest influences on the major indices, though, were the biggest stocks. The Vanguard Mega-Cap Growth ETF (MGK) gained as much as 2.1%, driven by sizable gains in Tesla (TSLA 714.84, +11.29, +1.6%), which reacted favorably to Elon Musk clarifying that total headcount will increase this year even though salaried staff is apt to remain relatively flat, Amazon.com (AMZN 124.79, +2.44, +2.0%), which split 20-for-1, and Apple (AAPL 146.14, +0.76, +0.5%), which climbed ahead of today's Worldwide Developers Conference.
Those stocks and others, however, could not maintain their opening momentum. They fell prone to renewed selling interest, finishing well off session highs, as interest rates rose and natural gas futures soared. The Vanguard Mega-Cap Growth ETF ended the day up 0.5%.
Briefly, the 10-yr note yield moved back above 3.00%, ending its session up eight basis points at 3.04%, and natural gas futures settled the session up $0.84, or 9.8%, at $9.34/mmbtu.
WTI crude futures didn't go the way of natural gas futures. They tried early, briefly topping $120.00/bbl on a report that Saudi Arabia is raising oil prices for Asian buyers because of strong demand, but they eventually rolled over and settled the day down $1.01, or 0.8%, at $118.21/bbl.
That move contributed to the underperformance of the S&P 500 energy sector (-0.1%), which vacillated between positive and negative territory. Other underperformers of note included the real estate (-0.3%), health care (unch), information technology (+0.04%), and consumer staples (+0.05%) sectors.
In general, there wasn't much conviction on either the buy side or the sell side. That showed up in a relatively mixed advance-decline line for the NYSE and Nasdaq, and a sector scoreboard that featured only one sector with a gain of at least 1.0%. That was the consumer discretionary sector (+1.03%), which enjoyed the hefty support of Tesla and Amazon.com. The communication services (+0.98%) and materials (+0.97%) sectors finished just shy of 1.0% gains.
There was no economic data of note out of the U.S. today.
Looking ahead, market participants will receive the April Trade Balance Report (8:30 a.m. ET) and the April Consumer Credit Report (3:00 p.m. ET) on Tuesday.
- Dow Jones Industrial Average: -9.4% YTD
- S&P 400: -10.9% YTD
- S&P 500: -13.5% YTD
- Russell 2000: -16.0% YTD
- Nasdaq Composite: -22.9% YTD
Energy sector remains relatively flat
06-Jun-22 15:25 ET
Dow -39.53 at 32860.17, Nasdaq +19.46 at 12032.19, S&P +6.54 at 4115.08
[BRIEFING.COM] Heading into the last half hour of trading, the major indices are still flirting with a flat line.
The energy sector has seen volatile price action and has been underperforming most of the day. WTI crude oil futures settled lower by 0.9% to $118.21/bbl, comfortably under the $120.00/bbl level. The natural gas futures have stolen the limelight from crude oil this session. Natural gas futures have almost reached double-digit territory, settling up 9.8% to $9.34/mmbtu.
Separately, the 10-yr Treasury note yield is up 8 basis points to 3.04%.
Looking ahead, market participants will receive two pieces of economic data tomorrow. The April Trade Balance (Briefing.com consensus -$89.6 bln) comes at 8:30 a.m. ET and the April Consumer Credit report comes at 3:00 p.m. ET.
Sectors following with broader market
06-Jun-22 15:00 ET
Dow +9.77 at 32909.47, Nasdaq +38.77 at 12051.50, S&P +12.45 at 4120.99
[BRIEFING.COM] In the wake of last week's losses, the market continues to troll along near session lows as buying enthusiasm at the beginning of the session cooled off. The major indices are relatively flat-lined as nothing is up big or down big.
The price action is a disappointment so far as the market couldn't hold onto stronger gains, so traders will be watching to see if the market can recoup before the close or if there is a move ultimately to lower lows.
Two sectors that have followed the general market's price action in a similar fashion today are consumer staples (-0.2%) and information technology (-0.1%). Both reached highs early on, gave into selling interest and have been floating around their session lows for most of the afternoon.
Regeneron slips after bearish Jefferies recommendation
06-Jun-22 14:30 ET
Dow +9.85 at 32909.55, Nasdaq +52.69 at 12065.42, S&P +13.87 at 4122.41
[BRIEFING.COM] The major averages have fallen off from their previous levels, though all still remain in positive territory, with the S&P 500 (+0.34%) firmly in second place.
S&P 500 constituents Embecta Corp. (EMBC 29.38, +1.87, +6.80%), Generac (GNRC 286.16, +17.28, +6.43%), and Valero Energy (VLO 139.25, +3.83, +2.83%) dot the top of today's standings. GNRC seems to be benefiting today from a sentiment shift toward the upcoming hurricane season, while VLO outperforms alongside oil refiner peers like MPC and PSX.
Meanwhile, New York-based biotech firm Regeneron Pharma (REGN 607.92, -22.43, -3.56%) is today's top laggard, slipping after being initiated with an Underperform recommendation at Jefferies.
Gold narrowly lower as yields, dollar rise
06-Jun-22 14:00 ET
Dow +102.73 at 33002.43, Nasdaq +112.19 at 12124.92, S&P +29.95 at 4138.49
[BRIEFING.COM] The tech-heavy Nasdaq Composite (+0.93%) holds a decent lead among its major average counterparts with about two hours remaining on Monday.
Gold futures settled $6.50 lower (-0.3%) to $1,843.70/oz, pressured by both rising yields and a modestly higher dollar.
Meanwhile, the U.S. Dollar Index is up approx. +0.2% to $102.32.
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