Stock Market News June 8, 2019
Markets:
Market indexes roared back this week, supported by a Fed chief Powell’s remarks in a speech Tuesday, that were seen as opening the door to a rate cut if the economy slows. The weak jobs report on Friday morning also added fuel to the fire, sending all 4 indexes up for the week. The DOW led, up 4.71%, followed by the S&P, up 4.41%, the NASDAQ, up 3.88%, and the Russell small caps, up 3.43%:
High Dividend Stocks:
These high yield stocks go ex-dividend next week: APTS, SITC, ARCC, EPM, EVC, NEWT, NMFC, OCSL, SOHO, TCRD, TSLX, WPP (LON:WPP).
Market Breadth:
30 out of 30 DOW stocks rose this week, vs. 11 last week. 96% of the S&P 500 rose, vs. 38% last week.
Volatility:
The VIX fell 12.88% this week, ending the week at $16.30.
FOREX:
The US $ fell vs. most major currencies this week, after the Fed’s dovish comments on potential rate cuts in 2019.
Economic News:
The Non-Farm Payrolls Report indicated that only 75,000 jobs were created last month, vs. 224,000 in April, missing the forecast of 180,000 by a wide berth. This was the 2nd month in 2019 in which the figure fell below 100,000. In the 4 months since February, monthly job gains have only averaged 127,000, below the 150,000 monthly figure needed to maintain economic expansion.
The unemployment rate remained at 3.6%.
“U.S. private employers added 27,000 jobs in May, well below economists’ expectations and the smallest monthly gain in more than nine years, a report by ADP (NASDAQ:ADP) showed on Wednesday. May’s increase was the smallest since March 2010.” (Reuters)
“American manufacturers said business grew in May at the slowest pace in two and a half years, reflecting disruptions caused by the trade standoff with China as well as softer auto sales, a survey of executives found. The Institute for Supply Management said its Mfg. Index slipped to 52.1 from 52.8 in April. Economists surveyed by MarketWatch had forecast the index to total 52.6%. “Newly increased tariffs on Chinese imports pose an issue on a number of chemicals and materials that are solely produced in China. We are expecting increases in raw materials starting June 1,” said an executive at a company that makes plastic and rubber products.” (Market Watch)
“Factory orders in the U.S. fell sharply in April for the second time in three months, adding to mounting evidence of a broad slowdown in a key segment of the U.S. economy. Orders dropped 0.8% in the month. Demand was even weaker for durable goods — products such as autos, appliances and machines meant to last at least three years. These orders sank an unrevised 2.1%. Orders declined for iron, steel, construction machinery, computers, autos and passenger planes.” (Market Watch)
Week Ahead Highlights:
It’ll be a slow week for financial data, but we’ll get a look at inflation, and some consumer data.
Next Week’s US Economic Reports:
Sectors:
Basic Materials led this week, up 9%, with Real Estate lagging.
Futures:
WTI Crude rose 1.01% this week, finishing the week at $54.04, while Natural Gas fell -4.77%.
