What a terrific start to the month of June…though surely not unusual after the typical lower last day of the prior month. Today, the DOW jumped up 135 points, the S&P 500 added 18, and the NASDAQ gained 48 points.
The DOW was led by good gains in recently beaten-down GS and JPM. In addition AXP, MCD, and UNH are at new all-time highs. The NASDAQ’s leaders were ISRG, at another new high, and PCLN. Recent heroes AMZN, NFLX and TSLA were fairly flat today.
Breadth numbers were strong at a 2.5 to 1 upside ratio. The VIX was lower again, dropping down below 10 to close at 9.89.
Economic reports showed that ADP, often inaccurate, predicted a large gain of 253,000 for tomorrow’s jobs report. The official estimate is a gain of 185,000. If this was the main reason for the rally today…then this could leave things vulnerable tomorrow if the number comes in closer to the official estimate or even lower.
Weekly jobless claims rose by 13,000 to 248,000 which was the highest in five weeks. The May ISM Manufacturing Survey fell to 54.9 which was the second lowest this year. May construction spending fell by 1.4% which was the lowest level since the end of 2016.
Bond yields were a little higher with the 10-year Treasury Note at 2.23%. This rate lending some strength to the dollar as the Euro was down to 1.12 and the Japanese yen was at 111.4 to the greenback. As a result, gold was lower at $1,268 and crude oil was down to 48.03 a barrel.
DONALD SELKIN
These are excerpts from Don Selkin’s Daily Market Notes, abbreviated and updated with permission from the author. Don Selkin is the Chief Market Strategist at Newbridge Securities Corporation, member FINRA/SIPC and provides the Fair Value analysis for CNBC each morning. The commentary provided in this Market Letter is intended to provide timely market analysis and should not be considered a research report. This Market Letter may contain, and is limited to: Discussions of broad based indices; Commentaries on economic, political or market conditions; Technical analyses concerning the demand and supply for a sector, index or industry based in trading volume and price; Statistical summaries of multiple companies’ financial data, including listings of current ratings; and, Recommendations regarding increasing or decreasing holdings in particular industries or securities. This Market Letter does not make a financial or investment recommendation or otherwise promotes a product or service of the firm. This Market Letter contains only news, facts, and commentary on information previously reported from a news source believed to be accurate and reliable by the author. These news sources include the following: Bloomberg Financial, Reuters, and the Associated Press.