Daily global market review
The market performed well today due to positive economic data, news of all 23 banks passing the Federal Reserve's stress test, and rebalancing activity at the end of the quarter. Small-cap stocks outperformed larger stocks, cyclical sectors performed better than countercyclical sectors, and value stocks outpaced growth stocks. This was influenced by a decrease in weekly initial jobless claims and stronger-than-expected consumer spending in the first quarter, leading to an upward revision of Q1 GDP growth. As a result, economically-sensitive stocks were favored over mega-cap stocks. Treasury yields increased as the market anticipated a potential interest rate hike by the Federal Reserve. The U.S. Dollar Index also rose in response to these expectations. Despite the increase in market rates, the stock market focused on the positive outlook for the economy and sectors such as financials, materials, energy, industrials, and real estate performed well. Financials benefited from strong bank stocks and investment banks, with three IPOs completed on the day. JPMorgan Chase and Goldman Sachs were among the top gainers in the Dow Jones Industrial Average. The majority of publicly-traded stocks ended the day with gains. Micron, which reported its Q3 results, did not perform well due to reduced revenue guidance for PC and smartphone unit volumes. Small-cap stocks, driven by gains in banks and energy stocks, stood out, with the Russell 2000 outperforming the S&P 500. Overall trading volume was relatively low. Economic data for the day included an upward revision of Q1 GDP growth, a decrease in initial jobless claims, a decrease in continuing jobless claims, and a decline in May Pending Home Sales.
The 10-year Treasury Note experienced a significant decrease of 33/32 points, resulting in a yield of 3.85%. On the NYSE, there were 2023 advancing stocks and 939 declining stocks, with a trading volume of 823 million shares. Similarly, the Nasdaq reported 2602 advancers and 1777 decliners, with a higher trading volume of 4.39 billion shares.
In terms of industry performance, the financials, materials, industrials, health care, energy, and real estate sectors showed strength, while the consumer staples, communication services, and utilities sectors were relatively weaker.
Several factors influenced market movement. Firstly, there was an optimistic sentiment due to the upward revision of Q1 GDP and a decrease in initial jobless claims, which helped alleviate concerns of an economic downturn. The spike in Treasury yields followed the reports of Q1 GDP and initial jobless claims, impacting market dynamics. Lastly, the market experienced excitement surrounding three initial public offerings (IPOs) that took place on the day.
In the United States, the Dow Jones Industrial Average closed at 34,122.42, marking a positive change of 269.76 points or a 0.80% increase. The S&P 500 index finished at 4,396.44, showing a gain of 19.58 points or a 0.45% rise, while the NASDAQ index ended at 13,591.33, experiencing a minor decrease of 0.42 points or a 0.00% change. The VIX volatility index stood at 13.54, increasing by 0.11 points or 0.82%. In Canada, the S&P/TSX Composite index closed at 19,913.17, recording an upward movement of 94.32 points or a 0.48% increase, and the S&P/TSX 60 index finished at 1,199.94, showing a gain of 5.44 points or a 0.46% rise. In Brazil, the BOVESPA index concluded at 118,382.65, experiencing a significant increase of 1,701.33 points or a 1.46% rise. The S&P IPSA index in Chile stood at 5,729.22, exhibiting a gain of 72.23 points or a 1.28% increase. In Mexico, the S&P/BMV IPC index closed at 53,614.06, showing a gain of 154.00 points or a 0.29% rise. In Europe, the STOXX Europe 50 index finished at 3,963.00, recording a slight increase of 3.78 points or a 0.10% rise, and the STOXX Europe 600 index stood at 456.64, showing a gain of 0.59 points or a 0.13% increase. The FTSE 100 index in the United Kingdom closed at 7,471.69, experiencing a decline of 28.80 points or a 0.38% decrease. In Italy, the FTSE MIB index concluded at 27,928.44, marking a significant increase of 290.98 points or a 1.05% rise. The CAC 40 index in France stood at 7,312.73, showing a gain of 26.41 points or a 0.36% increase. In Japan, the Nikkei 225 index closed at 33,234.14, recording a minor gain of 40.15 points or a 0.12% rise. In Hong Kong, the Hang Seng index ended at 18,934.36, experiencing a decrease of 237.69 points or a 1.24% decline. The Shanghai Composite index in China finished at 3,182.38, showing a slight decrease of 6.99 points or a 0.22% drop. In Australia, the S&P/ASX 200 index stood at 7,194.90, exhibiting a minor decline of 1.60 points or a 0.02% decrease. The KOSPI index in South Korea closed at 2,550.02, experiencing a decrease of 14.17 points or a 0.55% decline. Finally, in Taiwan, the Taiwan SE index concluded at 16,942.30, recording an increase of 6.67 points or a 0.04% rise.
Sigilon Therapeutics, Inc. (SGTX) showed a significant gain, with its price increasing by 17.22 points or 438.17%, reaching a value of 21.15. The trading volume for SGTX was 5 million shares.
Kintara Therapeutics, Inc. (KTRA) experienced a gain of 1.22 points or 40.80%, resulting in a price of 4.21. The trading volume for KTRA reached 8 million shares.
TOP Financial Group Limited (TOP) recorded a gain of 2.15 points or 38.05%, with its price reaching 7.80. The trading volume for TOP amounted to 26 million shares.
Greenbrier Companies, Inc. (GBX) saw its price increase by 10.34 points or 31.83%, reaching a value of 42.82. The trading volume for GBX was 2 million shares.
Immunome, Inc. (IMNM) showed a gain of 1.79 points or 30.29%, resulting in a price of 7.70. The trading volume for IMNM reached 12 million shares.
Franklin Covey Co. (FC) experienced a gain of 9.39 points or 26.28%, with its price reaching 45.12. The trading volume for FC amounted to 389,000 shares.
Zivo Bioscience, Inc. (ZIVO) recorded a gain of 0.50 points or 21.28%, reaching a price of 2.85. The trading volume for ZIVO was 43,000 shares.
Carriage Services Inc. (CSV) saw its price increase by 5.72 points or 20.40%, reaching a value of 33.76. The trading volume for CSV amounted to 583,000 shares.
FREYR Battery (FREY) showed a gain of 1.53 points or 20.26%, resulting in a price of 9.08. The trading volume for FREY reached 13 million shares.
Overstock.com, Inc. (OSTK) experienced a gain of 5.03 points or 19.69%, with its price reaching 30.57. The trading volume for OSTK was 15 million shares.
In the realm of cryptocurrencies, the Nasdaq Crypto Index stood at 1,735.58, indicating a gain of 12.53 points or 0.73%. Bitcoin, the prominent digital currency, reached a price of 30,349.00, with a positive change of 248.00 points or 0.82%. Ether, another significant cryptocurrency, experienced a rise of 15.30 points or 0.84%, resulting in a price of 1,845.70. Litecoin demonstrated a gain of 1.07 points or 1.29%, with its price reaching 84.19. XRP also witnessed an increase, with its price rising by 0.01 points or 1.69% to reach 0.47.
Moving on to bonds and rates, the 3 Month Treasury yield stood at 5.192%, reflecting a yield change of 0.013. The 2 Year Treasury yield was recorded at 4.865%, with a yield change of 0.149. The 5 Year Treasury yield reached 4.133%, showing a yield change of 0.155. The 10 Year Treasury yield stood at 3.840%, with a yield change of 0.127. Lastly, the 30 Year Treasury yield was reported as 3.900%, demonstrating a yield change of 0.093.
In the currency market, the Euro to US Dollar exchange rate was 1.0868, reflecting a decrease of 0.46%. The British Pound to US Dollar exchange rate stood at 1.2612, with a decrease of 0.21%. The US Dollar to Canadian Dollar exchange rate was 1.3252 a decrease of 0.07%. The US Dollar to Swiss Franc exchange rate reached 0.8995, indicating an increase of 0.28%. Lastly, the US Dollar to Japanese Yen exchange rate was 144.7950, with a positive change of 0.24%.
In the overview, we have different indexes and their corresponding values, changes, and percentage changes. The Bloomberg Commodity index had a value of 223.97, with a change of -0.14 and a -0.06% decrease. The UBS Bloomberg CMCI index stood at 1,433.23, showing a change of -3.82 and a -0.27% decline. The Reuters/Jefferies CRB index recorded a value of 288.07, with a change of -0.12 and a -0.04% decrease. The Rogers International index was at 3,520.56, experiencing a change of -1.01 and a -0.03% decline. Lastly, the S&P GSCI index had a value of 3,201.02, showing an increase of +10.41 and a +0.33% rise (yesterday).
Next, we have energy-related data. WTI Crude Oil (Nymex) was priced at USD 69.84 per barrel, with a change of +0.28 and a +0.40% increase. Brent Crude (ICE) had a price of USD 74.32 per barrel, showing a change of +0.29 and a +0.39% increase. RBOB Gasoline (Nymex) was priced at 260.67 US cents per gallon, with a change of +0.33 and a +0.13% increase. Natural Gas (Nymex) was at USD 2.68 per MMBtu, experiencing a change of +0.01 and a +0.37% increase. Lastly, Heating Oil (Nymex) was priced at 242.03 US cents per gallon, showing a change of +1.36 and a +0.57% increase.
Moving on to precious and industrial metals, Gold (Comex) had a price of USD 1,916.50 per troy ounce, with a change of -5.70 and a -0.30% decrease. Gold Spot had a price of USD 1,908.35 per troy ounce, showing a change of +1.03 and a +0.05% increase. Silver (Comex) was priced at USD 22.79 per troy ounce, with a change of -0.30 and a -1.30% decrease. Copper (Comex) stood at 369.80 US cents per pound, experiencing a change of -4.45 and a -1.19% decrease. Platinum Spot had a price of USD 899.45 per troy ounce, showing a change of -15.59 and a -1.70% decrease.
Lastly, we have agricultural data. Corn (CBOT) was priced at 528.25 US cents per bushel, with a change of -8.50 and a -1.58% decrease. Wheat (CBOT) had a price of 668.50 US cents per bushel, showing a change of -1.25 and a -0.19% decrease. Cocoa (ICE) was priced at USD 3,261.00 per metric ton, experiencing a change of -77.00 and a -2.31% decrease. Cotton #2 (ICE) was at 79.03 US cents per pound, with a change of +1.67 and a +2.16% increase. Live Cattle (CME) had a price of 174.53 US cents per pound, showing a change of +0.65 and a +0.37% increase.
Tomorrow, several economic data releases are scheduled.
At 8:30 AM ET, the Personal Income and Outlays report will be published, including various indicators such as the Core PCE Price Index on a monthly basis, Personal Consumption Expenditures on a monthly basis, Core PCE Price Index on a yearly basis, PCE Price Index on a yearly basis, PCE Price Index on a monthly basis, and Personal Income on a monthly basis. These figures have a high impact and are expected to show the following changes compared to the previous readings: Core PCE Price Index (M/M) is forecasted to increase by 0.2% after a previous increase of 0.4%, Core PCE Price Index (Y/Y) is expected to rise by 3.8% after a previous reading of 4.7%, PCE Price Index (Y/Y) is expected to decrease to 4.4% from the previous value of 4.7%, PCE Price Index (M/M) is projected to show a 0.1% increase after a previous increase of 0.4%, and Personal Income (M/M) is expected to remain unchanged at 0.4%.
At 9:45 AM ET, the Chicago PMI index will be released, which has a medium impact. The previous reading was 40.4, and the forecast for the current release is 44.2.
The Consumer Sentiment index will be announced at 10:00 AM ET, also with a medium impact. Both the previous and forecasted readings stand at 63.9.
At 1:00 PM ET, the Baker Hughes Rig Count report will provide data on rig counts in the Gulf of Mexico, the United States, Canada, and North America. This report has a low impact, and the previous values were 18 for the Gulf of Mexico, 682 for the United States, 169 for Canada, and 851 for North America.
Lastly, at 3:00 PM ET, the Farm Prices report will be published, presenting year-over-year and month-over-month changes. This report has a low impact.