The S&P 500 hit a record high for the fourth straight session yesterday, helped by shares of heavyweight technology firms and banks, while an upbeat consumer confidence report set a positive tone for the key jobs report at the end of the week. U.S consumer confidence increased in June to its highest level since the COVID-19 pandemic started more than a year ago, bolstering expectations for strong economic growth in the second quarter. Market participants are closely watching the non-farm payroll report on Friday that could pave way for the U.S. Federal Reserve’s policy stance which hinges on an equitable recovery of the labor market. Ten of the 11 major S&P sectors rose in early trading, with energy, materials, and industrials among the top gainers after lagging in the past few sessions. All the three major Wall Street indexes are set for their fifth straight quarter of gains, boosted by ultra-loose monetary policy, a rebounding U.S economy, and robust corporate earnings.
Dow Jones Industrial Average
The Dow Jones Industrial Average added 0.03%. The biggest gainers of the session on the Dow Jones Industrial Average were Nike Inc., which rose 2.38% or 3.62 points to trade at 155.98 at the close. Home Depot Inc. added 1.26% or 3.97 points to end at 318.25 and Apple Inc. was up 1.15% or 1.55 points to 136.33 in late trade. The biggest losers included Boeing Co, which lost 1.75% or 4.19 points to trade at 235.77 in late trade. Walt Disney Company declined 1.51% or 2.66 points to end at 173.91 and Intel Corporation shed 1.25% or 0.72 points to 56.76.
NASDAQ 100
The NASDAQ index gained 0.19%. The top performers on the NASDAQ were BSQUARE Corporation which rose 206.11% to 8.020, Cerevel Therapeutics Holdings Inc. which was up 134.69% to settle at 29.50 and Marin Software Inc. which gained 129.47% to close at 17.2100. The worst performers were DiaMedica Therapeutics Inc. which was down 33.89% to 4.740 in late trade, ReShape Lifesciences Inc. which lost 28.27% to settle at 5.480, and Mediwound Ltd which was down 28.01% to 4.060 at the close.
Oil
Oil prices today extended the previous day's small gains after an industry report showed U.S crude stockpiles fell last week, overriding trader and investor concerns about transportation curbs in some countries as COVID-19 cases surge. U.S crude was up 41 cents, or 0.6% at $73.39 a barrel, having risen 0.1% in the previous session. While the highly contagious Delta variant of the coronavirus is taking hold in many countries, prompting new lockdowns or movement restrictions from Australia to Portugal, hopes of a broader recovery in demand for fuel remained intact. On the last day of June, U.S crude is heading for another monthly gain, which would mean the contract has risen for six out of the last seven months. Crude stocks in the United States were down by 8.2 million barrels, American Petroleum Institute data showed, according to two sources, who spoke on condition of anonymity. Still, gasoline inventories rose by 2.4 million barrels and distillate stocks were up by 428,000 barrels.
Precious and Base Metals
Gold prices held steady today as investors were cautious ahead of U.S jobs data due later this week, but prices were set to post their worst month since November 2016 on the U.S Federal Reserve’s shift to a hawkish policy stance. Spot gold was steady at $1,761.80 per ounce. U.S gold futures fell 0.1% to $1,761.80. For the month, prices were down 7.6%. For the quarter, gold had risen 3.2%. Federal Reserve Governor Christopher Waller on Tuesday said he is “very optimistic” about the economy, and while he declined to say when he thinks the Fed should start raising interest rates, he said it could be next year. U.S consumer confidence jumped to its highest level in nearly 1-1/2 years in June as growing labor market optimism amid a reopening economy offset concerns about higher inflation. The U.S Labor Department’s nonfarm payrolls data on Friday is expected to show a gain of 690,000 jobs this month, compared with 559,000 in May, according to a Reuters poll. Gold is seen as a hedge against inflation, although a Fed rate hike will increase the opportunity cost of holding bullion and dull its appeal. Silver rose 0.3% to $25.81 per ounce. Palladium gained 0.4% at $2,686.81 and was headed for a fourth straight quarterly gain. Platinum rose 0.2% to $1,068.96 and was set to post its worst quarter and month since March last year. Copper prices rose today but were set for their smallest quarterly gain since March 2020 on pressure from a firm dollar and top consumer China’s efforts to tame a red-hot metals rally. Copper prices have pulled back in recent weeks after hitting a record high in May on the back of a global economic recovery, rising investments into renewable energy and electric vehicles, as well as a tight supply outlook. Some of the pressure has come from China, with the world’s second-largest economy releasing state reserves of copper.
Traditional Agricultures
Soybean futures edged higher today, as traders adjusted positions ahead of a U.S government report on stock and acreage, while corn prices eased. Wheat futures ticked higher although expectations of strong output in Russia, the world’s biggest exporter, capped gains.
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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