US benchmark oil prices jump 2.8% to $75.51 a barrel and are now less than $1 from levels not seen since 2014. Investors are betting OPEC and Russia, which are meeting today, will decide to continue their policy of keeping barrels out of the market as they increase output at a rather slow pace despite quickly-rebounding global demand as the coronavirus pandemic eases. “We now believe $80 oil prices during the summer months is achievable,” says Peter Cardillo at Spartan Capital. WTI crude rose 51% during the first half of the year, and are now on track for six straight weekly increases. Brent crude also rises, up 2.2% at $76.25.
July 1, 2021S&P 500 kicks off quarter with sixth straight record close in sight
July 1, 2021July 1 (Reuters) – The S&P 500 index kicked off the second half of the year at a record high on Thursday as data showed fewer-than-expected weekly jobless claims, while energy stocks were supported by a spike in oil prices.
Ten of the 11 major S&P sectors rose, with energy (.SPNY), financials (.SPSY), industrials (.SPLRCI) and materials (.SPLRCM) leading the charge.
Initial claims for state unemployment benefits dropped 51,000 to a seasonally adjusted 364,000 in the week ended June 26, while layoffs plunged to a 21-year low in June as companies held on to their workers amid labor shortages. read more
“This morning’s beat on jobless claims is a real bright spot,” said Cliff Hodge, chief investment officer at Cornerstone Wealth.
“Staying below that big-round-number 400,000 level could bolster confidence in risk-taking during the dog days of summer.”
Separately, ISM data showed U.S. manufacturing activity grew at a moderate pace in June but employment contracted for the first time in seven months. read more
With the S&P 500 (.SPX) and the Nasdaq (.IXIC) hitting a series of record highs last month, investors are razor-focused on Friday’s nonfarm payrolls report, where a strong reading could force the U.S. Federal Reserve to rethink its accommodative stance.
Focus also shifts to the second-quarter earnings season in the coming weeks to gauge whether the first-half momentum could continue further for the remaining year.
“You can make a case for the market being expensive, but I don’t think we’re headed for any major correction. Could we see a pullback as we wait for the earnings? That’s a possibility,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
At 11:38 a.m. ET, the Dow Jones Industrial Average (.DJI) was up 82.70 points, or 0.24%, at 34,585.21 and the S&P 500 (.SPX) was up 11.28 points, or 0.26%, at 4,308.78. The Nasdaq Composite (.IXIC) was down 39.56 points, or 0.27%, at 14,464.40.
Walgreens Boots Alliance Inc (WBA.O) dropped 5.7% as it lowered its forecast for COVID-19 vaccine shots to be administered this year. read more
Micron Technology Inc (MU.O) slumped 5.4% even as the chipmaker beat estimates for quarterly profit and forecast fourth-quarter revenue above expectations. read more
MGM Resorts International (MGM.N) rose 1.6% after the U.S. casino operator said it will buy the remaining 50% stake in its JV, CityCenter Holdings LLC, for $2.125 billion from Infinity World Development.
Advancing issues outnumbered decliners by a 1.76-to-1 ratio on the NYSE and by a 1.05-to-1 ratio on the Nasdaq.
The S&P index recorded 25 new 52-week highs and no new low, while the Nasdaq recorded 48 new highs and 19 new lows.
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Source: https://www.reuters.com/business/sp-futures-near-record-high-with-jobless-claims-focus-2021-07-01/