Daily global market review
The market had a notably strong day, with major indices closing near their session highs and posting gains ranging from 0.6% to 1.7%. This upward movement was driven by a series of economic data releases that exceeded expectations, alleviating concerns about a potential economic downturn. Specifically, the market received positive reports on May Durable Goods Orders, May New Home Sales, and June Consumer Confidence. As a result, today's trading had a risk-on and pro-cyclical tone.
Early in the day, buying interest was particularly noticeable in segments of the market that had been lagging behind index-level gains this year. Mega-cap stocks, on the other hand, showed relative underperformance but still experienced some upward movement. As the afternoon progressed, mega caps caught up with the broader market, contributing to the acceleration of index gains. One notable exception was Alphabet (GOOG), which initially declined by as much as 1.8% after being downgraded by Bernstein from Outperform to Market Perform. However, it briefly entered positive territory before ultimately closing with a modest loss.
Several ETFs and indices saw positive growth. The Vanguard Mega Cap Growth ETF (MGK) rose by 1.5%, the Invesco S&P 500 Equal Weight ETF (RSP) increased by 1.2%, and the market-cap weighted S&P 500 also rose by 1.2%. Strong performances from their respective mega-cap components propelled the information technology (+2.0%) and consumer discretionary (+2.1%) sectors to the top spots on the leaderboard.
The consumer discretionary sector benefited from the outperformance of homebuilder components in response to the significant increase in new home sales in May. The information technology sector, on the other hand, saw gains fueled by the strong performance of semiconductor components. Notable ETFs in these sectors, such as the SPDR S&P Homebuilder ETF (XHB) and the PHLX Semiconductor Index, rose by 2.9% and 3.6% respectively.
Other sectors that performed well included materials (+1.4%) and industrials (+1.3%), both of which are economically sensitive. On the contrary, the health care (-0.2%), utilities (+0.3%), and consumer staples (+0.3%) sectors underperformed, closing near the bottom of the pack. The consumer staples sector was particularly weighed down by a significant loss in Walgreens Boots Alliance (WBA), a Dow component, following disappointing fiscal Q3 earnings and outlook.
The positive economic data released in the morning led to selling in the Treasury market. The yield on the 2-year note rose by two basis points to 4.76%, while the yield on the 10-year note increased by five basis points to 3.77%.
Year-to-date performance for key indices as of the current date is as follows: Nasdaq Composite (+29.5%), S&P 500 (+14.0%), Russell 2000 (+5.0%), S&P Midcap 400 (+6.0%), and Dow Jones Industrial Average (+2.4%).
In summary, the stock market experienced a strong day, driven by better-than-expected economic data. Market participants reacted positively to reports on durable goods orders, new home sales, and consumer confidence. Mega-cap stocks showed strength overall, except for Alphabet, which faced a downgrade. The market saw broad-based gains with a risk-on bias, while quarter-end rebalancing activity and strong economic indicators contributed to the positive sentiment. The Treasury market witnessed selling as a result of the favorable data.
In terms of industry performance, the Consumer Discretionary, Information Technology, Industrials, and Communication Services sectors exhibited strength. Conversely, the Health Care sector demonstrated weakness.
Several factors influenced market movement. Firstly, there were broad-based gains across various sectors, reflecting a risk-on sentiment among investors. Additionally, quarter-end rebalancing activity played a role in market dynamics. Mega-cap stocks performed well, with the exception of Alphabet (GOOG), which experienced a downgrade from Bernstein, downgraded to Market Perform from Outperform.
The market responded to a series of economic data releases that exceeded expectations. Notably, there was a robust report on new home sales in May, an increase in consumer confidence in June, and a rise in nondefense capital goods orders, excluding aircraft, which serves as a gauge for business spending. These positive indicators spurred market reactions.
Consequently, there was selling observed in the Treasury market as a result of the favorable economic data.
In the United States, the Dow Jones Industrial Average closed at 33,926.74, recording a positive change of 212.03 points or 0.63%. Similarly, the S&P 500 ended at 4,378.41, rising by 49.59 points or 1.15%. The NASDAQ Composite gained 219.89 points or 1.65% to finish at 13,555.67. The VIX index, which measures market volatility, decreased by 0.51 points or 3.58% to 13.74. In Canada, the S&P/TSX Composite index rose by 145.77 points or 0.74% to 19,733.09, while the S&P/TSX 60 increased by 8.54 points or 0.72% to 1,189.29. The Brazilian BOVESPA index saw a decrease of 720.08 points or 0.61% to 117,522.87, and the Chilean S&P IPSA declined by 20.70 points or 0.36% to 5,658.86. In Mexico, the S&P/BMV IPC index gained 591.17 points or 1.11% to reach 53,926.91.
Moving on to Europe, the STOXX Europe 50 index closed at 3,938.86, rising by 0.52 points or 0.01%. The STOXX Europe 600 index increased by 0.22 points or 0.05% to 452.90. The FTSE 100 in the United Kingdom climbed by 7.88 points or 0.11% to 7,461.46, and the FTSE MIB in Italy rose by 158.18 points or 0.58% to 27,401.09. The CAC 40 in France recorded a gain of 31.23 points or 0.43% to 7,215.58.
In Asian markets, the Japanese Nikkei 225 index closed at 32,538.33, decreasing by 160.48 points or 0.49%. The Hang Seng index in Hong Kong increased by 354.00 points or 1.88% to 19,148.13. The Shanghai Composite in China rose by 38.82 points or 1.23% to 3,189.44. In Australia, the S&P/ASX 200 gained 39.50 points or 0.56% to reach 7,118.20. The South Korean KOSPI index declined by 0.81 points or 0.03% to 2,581.39, while the Taiwan SE index dropped by 171.34 points or 1.00% to 16,887.90.
The BSE MidCap index had a last value of 28,376.60, showing a change of +0.38%. The BSE Sensex index recorded a last value of 63,416.03, experiencing a change of +0.71%, which represented one of the highest increases among the indices. The BSE SmallCap index stood at 32,412.56, indicating a change of +0.61%. Among the NIFTY indices, the Nifty smallcap 50 had a last value of 4,836.30, showing a change of +0.83%, which represented one of the highest increases. The Nifty 100 index stood at 18,751.30, experiencing a change of +0.64%. The Nifty 50 recorded a last value of 18,817.40, with a change of +0.68%. The Nifty 50 USD had a last value of 7,948.34, showing a change of +0.68%. Finally, the S&P BSE-100 index had a last value of 19,221.80, indicating a change of +0.64%.
CalciMedica, Inc. (CALC) saw its price rise to $4.30 with a positive change of $0.94, representing a 28.00% increase. The trading volume for CALC reached 271K shares.
Enovix Corporation (ENVX) experienced a significant price surge of $3.31, bringing its price to $16.43, reflecting a 25.23% increase. The trading volume for ENVX stood at 28 million shares.
OneConnect Financial Technology Co Ltd Sponsored ADR (OCFT) observed a price increase of $0.59, reaching $3.35, indicating a 21.38% gain. OCFT traded with a volume of 415K shares.
Kaleyra Inc (KLR) had a price boost of $0.84, resulting in a price of $4.80, marking a 21.21% increase. KLR had a trading volume of 318K shares.
Nutriband, Inc. (NTRB) experienced a positive change of $0.40, raising its price to $2.44, representing a 19.90% increase. NTRB traded with a volume of 31K shares.
AdaptHealth Corp. (AHCO) saw a significant price increase of $1.85, bringing its price to $11.28, reflecting a 19.62% gain. AHCO had a trading volume of 4 million shares.
Arena Group Holdings, Inc. (AREN) had a price increase of $0.79, reaching $4.90, indicating a 19.22% gain. The trading volume for AREN amounted to 276K shares.
Paltalk, Inc. (PALT) witnessed a price rise of $0.55, resulting in a price of $3.42, marking a 19.16% increase. PALT traded with a volume of 2 million shares.
Hawaiian Holdings, Inc. (HA) experienced a price increase of $1.64, bringing its price to $10.25, reflecting a 19.12% gain. HA traded with a volume of 3 million shares.
American Rebel Holdings, Inc. (AREB) observed a positive change of $0.81, raising its price to $5.50, representing a 17.21% increase. The trading volume for AREB amounted to 7 million shares.
In the realm of cryptocurrencies, the Nasdaq Crypto Index stood at 1,762.03, rising by 1.73%. Bitcoin's price increased by 1.21% to reach 30,656.00. Ether rose by 1.75% to 1,891.40. Litecoin saw an increase by 1.16%. XRP remained relatively stable, with no change in price.
Regarding bonds and rates, the yields for various Treasury bonds experienced changes. The 3 Month Treasury yield decreased to 5.143%, while the 2 Year Treasury yield increased to 4.883%. The 5 Year Treasury yield rose to 4.030%, and the 10 Year Treasury yield climbed to 3.765%. Finally, the 30 Year Treasury yield increased to 3.841%.
In currency exchange rates, the Euro to US Dollar rate increased to 1.0961. The British Pound to US Dollar rate rose to 1.2750. The US Dollar to Canadian Dollar rate climbed to 1.3194. The US Dollar to Swiss Franc rate decreased to 0.8939, and the US Dollar to Japanese Yen rate increased to 144.0730.
The Bloomberg Commodity Index (BCOMTR:IND) recorded a value of 226.08, showing a change of -2.77 and a percentage change of -1.21%. The UBS Bloomberg CMCI (CMCITR:IND) stood at 1,447.73, experiencing a decrease of -15.61, equivalent to a -1.07% change. The Reuters/Jefferies CRB (CRYTR:IND) reported a value of 288.70, with a change of -4.10 and a percentage change of -1.40%. The Rogers International Index (RICIGLTR:IND) reached 3,536.27, showing a decline of -56.55 and a percentage change of -1.57%. The S&P GSCI (SPGSCITR:IND) stood at 3,243.50, recording an increase of +7.83 and a percentage change of +0.24% (yesterday).
In the energy sector, WTI Crude Oil (CL1:COM) traded at $67.96 per barrel, experiencing a decline of -1.41, equivalent to a -2.03% change. Brent Crude (CO1:COM) had a price of $72.56 per barrel, showing a decrease of -1.62 and a percentage change of -2.18%. RBOB Gasoline (XB1:COM) traded at 254.99 USd/gal., with an increase of +1.24 and a percentage change of +0.49%. Natural Gas (NG1:COM) had a price of $2.77 per MMBtu, showing a decrease of -0.02 and a percentage change of -0.75%. Heating Oil (HO1:COM) traded at 241.99 USd/gal., experiencing a decline of -1.89 and a percentage change of -0.77%.
Moving to precious and industrial metals, Gold (GC1:COM) traded at $1,923.80 per t oz., experiencing a decrease of -10.00 and a percentage change of -0.52%. Gold Spot (XAUUSD:CUR) reached a price of $1,913.70 per t oz., with a minor increase of +0.01 and a percentage change of +0.00%. Silver (SI1:COM) stood at $23.15 per t oz., showing an increase of +0.12 and a percentage change of +0.54%. Copper (HG1:COM) had a price of 378.85 USd/lb., experiencing a decline of -1.60 and a percentage change of -0.42%. Platinum Spot (XPTUSD:CUR) traded at $927.53 per t oz., with a slight increase of +0.57 and a percentage change of +0.06%.
In the agriculture sector, Corn (C 1:COM) had a price of 561.00 USd/bu., showing a decrease of -27.25 and a percentage change of -4.63%. Wheat (W 1:COM) traded at 699.00 USd/bu., experiencing a decline of -39.25 and a percentage change of -5.32%. Cocoa (CC1:COM) traded at $3,258.00 per MT, remaining unchanged at 0.00% change. Cotton #2 (CT1:COM) had a price of 77.06 USd/lb., showing a decrease of -0.80 and a percentage change of -1.03%. Live Cattle (LC1:COM) traded at 172.50 USd/lb., experiencing an increase of +1.90 and a percentage change of +1.11%.
Tomorrow's economic data releases are as follows:
At 7:00 AM ET, the MBA Mortgage Applications report will be released, including the Refinance Index, Composite Index, and Purchase Index on a week-over-week basis. This data is expected to have a low impact on the market. The previous values for these indexes were -2.1%, 0.5%, and 1.5% respectively. No forecast or actual values are available at this time.
At 8:30 AM ET, the Retail Inventories (Advance) report will be released, providing month-over-month data. This release is expected to have a low impact. The previous value was an increase of 0.2%, and no forecast is available.
Also at 8:30 AM ET, the International Trade in Goods (Advance) report will be released, including imports, exports, and the trade balance on a month-over-month basis. This report is anticipated to have a high impact on the market. The previous values were 1.8% for imports, -5.5% for exports, and a trade balance of -96.8 billion. No forecast values are available, but the actual values will be released.
The Wholesale Inventories (Advance) report will be released at 8:30 AM ET, providing month-over-month data. This release is expected to have a low impact. The previous value was a decrease of 0.2%, and no forecast is available.
At 10:00 AM ET, the State Street Investor Confidence Index will be released, providing an index value. This release is expected to have a low impact. The previous value was 89.8, and no forecast is available.
The EIA Petroleum Status Report will be released at 10:30 AM ET, including data on crude oil inventories, gasoline inventories, and distillate inventories on a week-over-week basis. This report is expected to have a high impact on the market. The previous values were a decrease of 3.8 million barrels for crude oil inventories, an increase of 0.5 million barrels for gasoline inventories, and an increase of 0.4 million barrels for distillate inventories. No forecast values are available, but the actual values will be released.
Finally, at 11:00 AM ET, the Survey of Business Uncertainty will be released, providing data on employment growth and sales growth. This release is expected to have a low impact. The previous values were 4.54% for employment growth and 4.70% for sales growth. No forecast or actual values are available at this time.