The S&P 500 and the NASDAQ were on pace to open near record levels as tech-related growth stocks edged up, while investors awaited data on the health of a U.S labor market recovery and corporate earnings later in the week. Nasdaq 100 was up 40 points, or 0.28%, with Microsoft Corp, Amazon.com Inc., and Facebook Inc. adding about half a percent in premarket trading. The S&P 500 on Friday logged its best weekly performance in 20 following a bipartisan agreement on a $1.2 trillion infrastructure spending deal and waning concerns about a sooner than expected policy tightening from the Federal Reserve. Both the S&P 500 and the NASDAQ hit a series of record highs last week. But the NASDAQ’s 4.4% gain is outpacing its peers in June as investors pile back into tech-oriented growth stocks on waning worries about runaway inflation. Quarterly results from Micron Technology, ConocoPhillips and Walgreens are slated for this week. On the economic front, attention will be on consumer confidence data, a private jobs report, and a crucial monthly employment report.
Dow Jones Industrial Average
The Dow Jones Industrial Average declined 0.44%. The best performers of the session on the Dow Jones Industrial Average were Intel Corporation, which rose 2.81% or 1.57 points to trade at 57.48 at the close. Meanwhile, Microsoft Corporation added 1.41% or 3.73 points to end at 268.75, and Apple Inc. was up 1.25% or 1.66 points to 134.77 in late trade. The worst performers of the session were Boeing Co, which fell 3.39% or 8.42 points to trade at 239.96 at the close. Chevron Corp declined 3.09% or 3.32 points to end at 103.98 and American Express Company was down 2.76% or 4.68 points to 164.77.
NASDAQ 100
The NASDAQ index gained 0.98%. The top performers on the NASDAQ Composite were Marin Software Inc. which rose 92.65% to 7.3400, QAD Inc. B which was up 79.81% to settle at 86.31, and Intellia Therapeutics Inc. which gained 50.19% to close at 133.41. The worst performers were Exelixis Inc. which was down 23.01% to 18.03 in late trade, Kiromic Biopharma Inc. which lost 19.00% to settle at 8.100, and Oblong Inc. which was down 17.30% to 3.275 at the close.
Oil
Oil prices fell 2% to a one-week low yesterday after hitting their highest since 2018 earlier in the session, as a spike in COVID-19 cases in Asia and Europe put a brake on the rally before this week's OPEC+ meeting. U.S crude fell $1.14, or 1.5%, to settle at $72.91. Those declines pushed both contracts out of the overbought territory and were their lowest close since June 18. Earlier in the volatile session, both benchmarks rose to their highest levels since October 2018. The forecast for oil demand recovery over the summer may be a bit overestimated, and traders are facing a reality check this week as the (COVID-19) Delta variant reached Europe and as an infections surge in Southeast Asia and Australia is bringing back lockdowns. Indonesia is battling record-high cases, Malaysia is set to extend a lockdown and Thailand has announced new restrictions. All eyes this week will be on the Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, to see what happens at their meeting on Thursday.
Precious and Base Metals
Gold prices eased today, as a firmer dollar made bullion expensive for holders of other currencies while concerns that the U.S. Federal Reserve will tighten its monetary policy sooner than expected also dented the metal’s appeal. Gold is seen as a hedge against inflation, though a rate hike by the Fed will increase the opportunity cost of holding bullion and dull its appeal. Spot gold was down 0.2% at $1,775.42 per ounce. U.S gold futures fell 0.2% to $1,776.40. The dollar index strengthened 0.1% against rivals. The Fed has made “substantial further progress” towards its inflation goal in order to begin tapering asset purchases, Fed Bank of Richmond President Thomas Barkin said yesterday. The supply chain imbalances and higher demand currently leading to higher inflation are transitory and the Fed has the tools to respond if inflation remains elevated for longer than anticipated, Fed Vice Chair for Supervision Randal Quarles said yesterday. European Central Bank policymakers yesterday started a public debate about ending emergency bond purchases launched at the start of the coronavirus pandemic last year, with fault lines already emerging between so-called hawks and doves. Bullion tends to fall out of favor amid tighter monetary policy. China’s net gold imports via Hong Kong more than halved in May from the prior month, when they touched the highest level in nearly three years, as demand faltered amid fresh coronavirus-led restrictions. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.3% to 1,045.78 tonnes yesterday from 1,042.87 tonnes on Friday. Silver eased 0.2% at $26.03 per ounce, palladium slipped 0.1% to $2,683.19. Platinum was steady at $1,090.33. Copper edged lower yesterday as slowing profit growth in industrial firms in top consumer China metals, rising inventories, and low premiums sapped enthusiasm for the metal.
Traditional Agricultures
Soybean futures slid today ahead of a key U.S. report on planted acres, although forecasts for heat in the western U.S Midwest limited losses. Corn also fell, while wheat ticked higher. Hot weather is a real and a longer-term concern. The market is awaiting key U.S acreage and stocks data due on Wednesday.
Disclaimer
This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.
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