Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

S&P 500 Notches Sixth-Straight Record Close Ahead of Monthly Jobs Report

Stock MarketsJul 01, 2021 04:19PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

By Yasin Ebrahim

Investing.com – The S&P 500 stretched its run of record daily closes to six on Thursday, boosted by energy on rising oil prices as major oil producers delayed their meeting by a day, while positive labor data buoyed expectations for a strong monthly jobs report due Friday. 

The S&P 500 rose 0.52% to close at a record of 4,319.94. The Dow Jones Industrial Average jumped 0.38%, or 138 points, the Nasdaq was up 0.13%. 

OPEC+ delayed its meeting by one day to Friday after a key member, the United Arab Emirates, was unwilling to go along with the reported preliminary deal - a 0.5 million barrel per day hike - agreed to by Saudi Arabia and Russia on Thursday. The delay casts doubt on whether the major oil producers will be able to reach a consensus on a production hike.     

Oil prices remained hit their highest level since October 2018 as investors bet that potentially higher output will be absorbed comfortably by an undersupplied market amid robust demand.  

"In our opinion, such an increase [of 500,000 barrels per day in August] would hardly be able to prevent a further rise in oil prices given that OPEC estimates that the market will be 1.9 million barrels per day short in the second half of the year…," Commerzbank (DE:CBKG) said in a note ahead of the decision.

The backdrop for cyclical stocks – those that move in tandem with economy – including energy was also supported by strength in the labor market ahead of the Friday's monthly jobs numbers.

"We forecast nonfarm payrolls rose 620,000 in June following a 559,000 rise in May as we think employers ramped up recruitment efforts and increased compensation to draw people back into employment," Morgan Stanley (NYSE:MS) said in a note.

Wages will likely be heavily scrutinized as companies are expected to have to pay up in order to attract employees, particularly in the services sector, at a time when the unemployment benefits has played a role in adding to labor supply shortage.   

"In this jobs report coming up Friday, there'll be a big focus on the wage component of the data, not just the [headline] number," John Ragard, senior portfolio manager, small cap equity at Spouting Rock Asset Management told Investing.com in an interview on Wednesday.  "In previous reports, there really wasn't a significant lift off in wage increases [...] the May report showed about 2% increase in hourly wage growth."

"[W]e're going to start seeing bigger increases in the hourly wage rate as we move through the summer and into the fall, just because that's what's needed to pull people back into the service sector," Ragard added.

Tech, meanwhile, was hurt by a weaker semiconductor stocks, paced by a decline in Micron (NASDAQ:MU).

Micron fell nearly 6% as the some on Wall Street sound the alarm on the peak pricing, pointing to an easing supply shortage in the second half of the year.

Summit downgraded Micron to hold from buy, and said the peak will be brought on by the seasonal build in the chipmaker's memory supply and customers switching inventory management to just-in-time from just-in-case inventory management.

Megacap tech, meanwhile, offered little to the broader market advanced as the fab 5 remained mostly lower.

Apart from Facebook (NASDAQ:FB), Google-parent Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT, Apple (NASDAQ:AAPL), and Amazon.com (NASDAQ:AMZN) were in the red.

In other news, Coinbase Global (NASDAQ:COIN) fell more than 4% after Mizuho said it remained on sidelines, reiterating its neutral trading as weaker cryptocurrency trading volumes are expected to weigh on crypto exchange's growth for the remainder of 2021. 

On the political front, Treasury Secretary Janet Yellen said a  group of 130 countries has agreed to a global minimum tax on corporations as part of a broader agreement to revamp international tax laws.

S&P 500 Notches Sixth-Straight Record Close Ahead of Monthly Jobs Report
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
New Jazenevd
New Jazenevd Jul 01, 2021 7:44PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Oil price goes to triple digits. Thanks to Burisma Joe.
Joel Schwartz
Joel Schwartz Jul 01, 2021 6:37PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Audit Powell’s Blackrock account. How is that not a conflcit of interest? They manage a FED 750B bond program and the chairman of the FED has a personal account with them.
Joel Schwartz
Joel Schwartz Jul 01, 2021 6:37PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Okay, bootlickers
CHADWICK RICHINGTON
CHADWICK RICHINGTON Jul 01, 2021 6:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The United States of Zimbabwe
NUNO LOUREIRO
NUNO LOUREIRO Jul 01, 2021 5:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Good data in jons means Hawkish FED, rate hikes, less bond buying... But in this fantasy world. There's no such thing as "bad data" or bad news
Mario tragik
Mario tragik Jul 01, 2021 4:46PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
lol
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email