Thursday's Market Recap - Stocks Fell Modestly Despite Strong Jobless Claims And ADP Data.
- Jun 3, 2021
- 2 min read
What is The Premarket Telling Us?
June 3, 2021 7:30 AM.
US stock futures are flashing red at this hour, suggesting market will be down at the open. Dow futures down 217 points, Nasdaq futures down 140 points, and S&P futures up 31 points. Asian markets closed mixed.
On The Bond Desk:
The US 10 Year Bond Yield
Currency Desk:
Eurodollar: 1.21
UK Pound: 1.41
Crude Oil:
WTI crude oil futures at $68.69/barrel, down 0.20%.
On the Earnings Calendar:
None to report
In M&A News:
None to report
What About The Asian And European Markets?
ajor Asian markets ended their day mixed. Japan (Ni kkei 225) added 0.39%, Shanghai lost 0.36%, Hong Kong (Hang Seng) fell 1.13%.
Major European markets also ended mixed. German (DAX) up 0.29%, France CAC 40 down 0.21%, London FTSE 100 lost 0.61 %.
Market And Sector Dynamics
Markets opened for trading solidly lower. The Dow fell 144 points, Nasdaq lost 110 points, and the S&P fell 21 points. WTI crude oil price was mildly higher at $68.96/barrel, up 0.19%, and the US 10 Year Bond hovered at 1.603%, down 1.2 basis points.
The Reddit traders continued their frenzied trading of AMC today, although less so than yesterday. This morning the AMC CEO, Adam Aron, in a SEC filing announced intention to issue, 11.5 million shares at $60/share, and included a warning to its common shareholders about the potential for significant losses for anyone purchasing its shares. Share of the company fell after that warning, and closed 18% lower, at $51.38/share. Also contributing positive market sentiment today was a report that the Biden Administration, in negotiations with Republicans, is considering a tax rate of no more than 15% to help pay for the 1 Trillion infrastructure plan.
In today's mild sell off, six of the eleven S&P sectors ended with losses, led by Consumer Discretionary, Technology, Communication Services, Industrials, Real Estate, and Basic Materials. Utilities, Consumer Staples, Healthcare, Energy, and Financial ended with modest gains.
Factors Influencing Today's Market
This week's Initial Jobless Claims were a lower than expected 385,000 claims vs 400,000 expected.
May's ADP Employment Report l came in higher than expected at 978,000 vs 650,000 consensus expectation.
The Reddit traders continued their frenzied trading of their favorite meme stocks, including AMC and others.
The Biden Administration may consider a tax rate of no more than 15% to pay for a 1 Trillion infrastructure deal.
Asian and European market ended today's session mixed.
US 10 Year Bond closed at 1.625%, up 2.25%.
WTI crude oil price closed at $68.86/barrel, up 0.02%.
Market Close Volume Traded And Advance Decline Ratio
Stocks pulled back in today's trading, with the Dow down 23.34 points, Nasdaq down 1.41.82 points, or (1.03%), and the S&P lost 15.27 points. Total NYSE volume traded, a heavy 5.63 billion shares. Declining shares outpaced Advancing shares by 1.28:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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