Stocks Finish Final Day of Bumpy Week Positively…..
U.S. equities finished out another choppy week with modest gains, while mixed on a weekly basis. Investors continued to focus on signs of rising inflation pressures and what that could hold for the timing of the Fed to begin tapering its asset purchases. The S&P 500 was able to notch a fresh record high for the second-straight day, and Information Technology issues continued to regain some footing to help the Nasdaq register a solid weekly advance. However, weakness in Health Care stocks is what kept the indices in a tight range. The economic calendar closed out the week on a light note, offering a lone report that showed June consumer sentiment improved more than expected, getting a boost from the expectations component, while also noting that inflation expectations moderated. In equity news, shares of Vertex Pharmaceuticals tumbled after it ended its pursuit to develop a therapy for liver disease, and Snowflake’s longer-term financial targets garnered some scrutiny from analysts. Treasuries were lower to pare some of the week’s decline in yields and the U.S. dollar gained solid ground, while gold fell and crude oil prices finished higher. Europe closed out the week with broad gains, while markets in Asia were mixed.
The Dow Jones Industrial Average rose 13 points to 34,480, the S&P 500 Index advanced 8 points (0.2%) to 4,247 and the Nasdaq Composite increased 49 points (0.4%) to 14,069. In moderate volume, 825 million shares were traded on the NYSE and 4.1 billion shares changed hands on the Nasdaq. WTI crude oil rose $0.62 to $70.91 per barrel. Elsewhere, the Bloomberg gold spot price tumbled $21.57 to $1,876.94 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—jumped 0.5% to 90.53. Markets were mixed for the week, as the DJIA lost 0.8%, the S&P 500 gained 0.4%, and the Nasdaq Composite rose 1.9%.
Treasury yields higher, June read on consumer sentiment tops forecasts…..
The June preliminary University of Michigan Consumer Sentiment Index (chart) rose to 86.4 versus the Bloomberg estimate calling for an increase to 84.2 from May’s 82.9 reading. The index improved more than expected as the current conditions portion rose slightly but the expectations component of the index grew solidly. The report noted that stronger growth in the national economy was anticipated, with an all-time record number of consumers anticipating a net decline in unemployment. Additionally, the report said rising inflation remained a top concern of consumers, although the expected rate of inflation declined in early June. The 1-year inflation forecast fell to 4.0% from May’s 4.6% rate, and the 5-10 year inflation forecast declined to 2.8% from the prior month’s 3.0% level.
Treasuries were lower, as the yield on the 2-year note ticked 1 basis point (bp) higher to 0.15%, while the yield on the 10-year note gained 3 bps to 1.46%, and the 30-year bond rate rose 2 bps to 2.15%.
©2021 Charles Schwab & Co., Inc. All rights reserved. Member SIPC.