The S&P 500 reached it's sixth consecutive all-time closing high yesterday, as a new quarter and the second half of the year began with upbeat economic data and a broad-based rally. Investors now eye today’s much-anticipated employment report. The bellwether index is enjoying its longest winning streak since early February, and the last time it logged six straight all-time highs was last August. The blue-chip Dow joined the S&P in positive territory, but a decline in tech shares - led by microchips - tempered the NASDAQ’s gain. The ongoing worker shortage attributed to federal emergency unemployment benefits, a childcare shortage, and lingering pandemic fears, was a common theme in the day’s economic data. Jobless claims continued their downward trajectory according to the Labor Department, touching their lowest level since the pandemic shutdown, and a report from Challenger, Gray & Christmas showed planned layoffs by U.S. firms were down 88% from last year, hitting a 21-year low.
Dow Jones Industrial Average
The Dow Jones Industrial Average added 0.38%. The best performers of the session on the Dow Jones Industrial Average were Nike Inc., which rose 2.30% or 3.56 points to trade at 158.05 at the close. Meanwhile, The Travelers Companies Inc. added 1.41% or 2.11 points to end at 151.82 and Chevron Corp was up 1.38% or 1.45 points to 106.19 in late trade. The worst performers of the session were Walgreens Boots Alliance Inc., which fell 7.41% or 3.90 points to trade at 48.71 at the close. Goldman Sachs Group Inc. declined 1.22% or 4.62 points to end at 374.91 and Walmart Inc. was down 1.20% or 1.69 points to 139.33.
NASDAQ 100
The NASDAQ index gained 0.13%. The top performers on the NASDAQ Composite were Alterity Therapeutics Ltd which rose 63.85% to 2.1300, Trxade Group Inc. which was up 61.76% to settle at 7.150 and Marin Software Inc. which gained 39.24% to close at 14.94. The worst performers were Citius Pharmaceuticals Inc. which was down 25.57% to 2.590 in late trade, Borqs Technologies Inc. which lost 23.45% to settle at 1.1100, and 1Stdibs.Com Inc. which was down 21.75% to 27.24 at the close.
Oil
Oil prices rose roughly 2% yesterday on indications that OPEC+ producers could increase output more slowly than expected in the coming months while rising global fuel demand causes supply to tighten. U.S. West Texas Intermediate crude settled at $75.23 a barrel, gaining $1.76, or 2.4%. Futures pared gains after the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, delayed its ministerial meeting until Friday to hold more talks on oil output policy, sources said, after the United Arab Emirates blocked a plan for an immediate reduction in supply cuts. Such a delay in talks is unusual and would appear to indicate some significant discord within the organization between participants. OPEC+ sources said earlier that the group was expected to increase output by 0.4 million barrels per day a month from August to December 2021. There have been several outbreaks of the Delta variant of the coronavirus, raising concerns that the recovery will falter.
Precious and Base Metals
Gold edged up yesterday as a more than 7% slide in June prompted some traders to buy the metal amid concerns over the Delta variant of the coronavirus, but moves were capped by caution over today’s U.S payrolls data and a strong dollar. Spot gold was up 0.2% to $1,773.09 per ounce, while U.S gold futures settled up 0.3% at $1,776.80. Gold posted its biggest monthly loss since November 2016 in June, hurt by a surprise hawkish shift by the U.S Federal Reserve. Higher interest rates tend to translate into a higher opportunity cost of holding non-yielding gold. But some investors bought gold as a safe haven as the Delta variant of the coronavirus spread, analysts said, with France delaying the easing of restrictions in the Landes region. Focus is now on Friday’s nonfarm payrolls report for clues on the timeline of the U.S monetary policy shift after Federal Reserve officials suggested the central bank should ease asset purchases this year. A Reuters poll forecast a gain of 690,000 jobs this month. Initial jobless claims dropped more than expected last week. Gold prices are in a downtrend and the bears have the overall near-term technical advantage. For gold to turn a corner, you’re going to have seen multiple closes above $1,800. Gold’s advance was also kept in check by a firm dollar. Elsewhere, silver fell 0.5% to $25.98 per ounce, palladium dropped 0.5% to $2,764.66, and platinum rose 0.8% to $1,081.30. Copper came under pressure yesterday as weak manufacturing data from top consumer China and a stronger dollar undermined sentiment, though fund buying offered some price support. Factory activity in China expanded at a slower pace in June as supply chain woes and a resurgence of COVID-19 cases in the export province of Guangdong drove output growth to its lowest in 15 months.
Traditional Agricultures
Soybean and wheat futures fell yesterday while corn firmed slightly, with all three commodities closing well off their session peaks on a round of profit-taking after rallying to their highest since mid-June. Forecasts for improving crop weather in the U.S Midwest added pressure. Much like corn, soybeans are dealing with the profit-taking that followed the sharply higher session and the wetter western Corn Belt forecast.
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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