6/5/20 Market Notes
Markets finished mixed in a choppy session on Thursday as investors took pause ahead of May’s US jobs report due to be released at 8:30 this morning. The S&P 500 rebounded off its lows in late trading, but still finished down 10.5 points (-0.35%) for the day. The Dow Jones Industrial Averaged eked out a 10 point gain (0.05%) after vacillating in and out of positive territory across a 300 point range; and Nasdaq lost 67 points (-0.69%). Small-caps performed much better than large yesterday with the S&P Small-Cap Index up over 1%. Sector performance continues to reflect the catch-up trade with Financials (+1.97%), Industrials (+1.05%), and Materials (+0.35%) finishing in positive territory. Health Care (-0.81%), Information Technology (-0.84%) , Real Estate (-1.80%) and Utilities (-1.95%) lead the decliners. Airlines soared on reports of better-than expected demand with American Airlines gaining over 41%. The Dollar and Treasuries continued their descent; with the yield on the 10-year rising to 0.87%. Protests continued for a tenth night but with few reports of looting. Protests are spreading overseas with rallies scheduled in Seoul and Australia. Violence in the US remained mostly in-check; but with rising concerns about police use of force after incidents in Buffalo and the Bronx went viral. US equity futures are pointing to a higher opening and global markets are higher as investors resume buying in a rally built on government stimulus. The S&P is poised to finish its third week of consecutive gains; and oil its sixth as OPEC reaches a tentative deal to extend recent production cuts. This morning all eyes will be on the May Payrolls report which is expected to show that as many as one in five Americans are currently out of work.
Disclosures: This market commentary is written by the 1879 Advisors® and represents the views of 1879 Advisors®. This commentary is not investment advice and should not be used as a basis to make investment decisions. Please consult with your registered investment advisor before making any investment decisions.