Friday's Market Recap - Investors Cheer Mildly Disappointing May Unemployment Report
- Jun 3, 2021
- 2 min read
What is The Premarket Telling Us?
June 6, 2021 7:30 AM.
US stock futures are mixed at this hour, two hours ahead of the opening bell. Dow futures are down 21 points, Nasdaq futures up 18 points, and S&P futures up 2 points.
On The Bond Desk:
The US 10 Year Bond Yield at 1.625%, down 0.2 basis points.
Currency Desk:
Eurodollar: 1.21
UK Pound: 1.41
Crude Oil:
WTI crude oil futures at $69/barrel, up 0.28%.
On the Earnings Calendar:
None to report
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended mixed. Japan (Nikkei 225) down 0.40%, Shanghai up 0.21%, Hong Kong (Hang Seng) down 0.17%.
Major European markets ended the day with gains. German (DAX) up 0.39%, France CAC 40 up 0.12%, London FTSE 100 up 0.07%.
Market And Sector Dynamics
Markets opened higher at the start of trading. The Dow gained 42 points, Nasdaq up 82 points, and the S&P gained 13 points. WTI crude oil $68.91/barrel, and the US 10 Year Bond hovered around the 1.628% level.
The morning rally was driven by a solid but less than expected Non-farm Payroll number for May, suggesting that the threat of rising interest rate, and runaway inflation it not an imminent threat, the Fed will more likely maintain its easy stance. Markets remained elevated for the entire trading session, and closed at the high of the day.
Today's rally showed ten of the eleven S&P sectors ending the session with solid gains, led by Technology, Communication Services, Consumer Discretionary, Energy, Industrials, Consumer Staples, Healthcare, Basic Materials, Financials, and Real Estate. Utilities were modestly lower.
Factors Influencing Today's Market
The BLS Nonfarm Payroll for May showed 559,000 new job created, which was decent but less than the 670,000 expected. The unemployment rate fell to 5.8%. This report suggests the Fed is not likely end its very accommodative stance any time soon.
US stock futures closed the day at 1.557%, down 4.20%.
WTI crude oil closed today at $69.62/barrel, up 1.18%.
This week's Baker Hughes US Oil Rig count held steady at 359, unchanged since the prior week.
Asian markets ended mixed, while European markets closed higher.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading today, all the indexes were solidly higher. The Dow gained 179.35 points, Nasdaq gained 199.98 points, and the S&P gained 37.07 points. Total NYSE volume traded, a modest 4.18 billion shares. Advancing shares outpaced Declining shares by 1.78:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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