The Momentum Shift

What impact did the week have on the market?

• End of May Moves: Although U.S. stocks generally traded in a narrow range throughout May, performance varied widely among the major indexes. The NASDAQ rose 5.8%, the S&P 500 gained 0.3%, and the Dow fell 3.5%. At the S&P 500 sector level, information technology posted the strongest result while energy had the weakest.

Lifted by a strong monthly U.S. jobs report and the resolution of the debt ceiling battle, stocks rallied on Thursday and Friday as the major indexes posted weekly gains of around 2%. The results pushed the S&P 500 above a narrow range that it has traded in since the start of April.

Source: Market Watch

• Exceeding Expectation: U.S. labor market strength again exceeded economists’ expectations, as the 339,000 jobs added last month came in well above the consensus forecast. The latest monthly figure was just below the 12-month average monthly gain of 341,000 jobs, and the totals for March and April were revised upward by a total of 93,000 jobs.?

Source: Seeking Alpha

Debt ceiling breakthrough: Financial market fears of a potential U.S. credit default were lifted as the House of Representatives and the Senate approved an agreement to lift the government’s debt ceiling for another two years. The measure was sent to the White House to be signed into law in advance of a June 5 deadline by which the government faced the risk of being unable to pay its bills.

Source: BBC

Check out the Top 5 stocks in each industry:

What to expect for the markets next week?

• US Trade Update: On Tuesday, we will get an update on the U.S. trade deficit for April, and data from the Federal Reserve on consumer borrowing activity in April.

• Earnings Report: Apple will hold its worldwide developer conference on Monday.

Joann, Inc, Ferguson, The J.M. Smucker Company, GameStop, Brown Forman Corporation, DocuSign, and Seneca Foods Corporation will report earnings next week.