Lefonti – 6-1-21
June 1, 2021
Oil Near Multi-Year High as US Supplies Fall — Market Talk
June 3, 2021The New York Stock Exchange, which started higher the first session in June, ended hesitant as bond yields strengthened slightly and oil prices rose sharply on Tuesday.
According to final results, the Dow Jones index has gathered 0.13% to 34.575.31 points, while the Nasdaq, with a high technological concentration, dropped 0.09% to 13,736.48 points. The broader S&P 500 index, set to a new high shortly after the opening, fell 0.05% to $ 4,202.04.
“Strong global economic data, coupled with robust manufacturing activity in the United States, kept optimism about the recovery and boosted the energy sectors,” said Schwab analysts, “but it did happen. to the detriment of so-called growth stocks or the technology sector ”.
For Peter Cardillo of Spartan Capital Securities, the rise in yields on 10-year Treasuries “has taken the wind out of the veils of the technology sector a little.”
US 10-year debt rates edged up to 1.6079% from 1.5943% the day before.
More importantly, fears for inflation were reflected in the sharp rise in crude prices, Cardillo said. “Oil has risen sharply as OPEC seemed to signal to the market that it did not count on the immediate arrival of Iranian oil on the market and that the situation was no longer one of oversupply,” added the analyst.
Stocks in the energy sector climbed almost 4%, followed by real estate (+ 1.69%) and materials (+ 1.39%).
Among the indicators, the ISM manufacturing activity index for May in the United States rose 0.5 points to 61.2%, better than expected, opening a busy week in macroeconomic news. The Fed’s Beige Book, which is due to give the pulse of the activity of the world’s largest economy before the next central bank monetary meeting, is due on Wednesday.
After the job creation in the private sector on Thursday, investors will have their eyes riveted on the official labor market figures for May on Friday. Analysts expect the unemployment rate to drop to 5.9% with job creation accelerating to 650,000, according to Briefing.com’s median forecast.
Among the titles of the day, the stock AMC, favorite of the online stock marketers, climbed 22.13% to 31.90 dollars, after the cinema chain raised 230.5 million dollars: it sold 8, 5 million shares in the Mudrick investment group, at a price higher than that of the close on Friday when the title had already been on the rise all week.
That of the video game distributor GameStop, also the object of individual speculators, also climbed sharply (+ 12.14% to 248.96 dollars).
Zoom video conferencing software closed down 1.15% to $ 327.72, and dropped more in post-close e-commerce (-1.75%), although it reported quarterly revenue higher than expectations after the close of the session.
