US Stock Indexes Finished Lower For 2nd Week Running
$IBB, $ASML, $INTC
DJIA +0.2% YTD, NAS 100 +6.6% YTD, S&P 500 +1.6% YTD, Russell 2000 +4.6% YTD
DJIA -56.12 at 17849.46, NAS 100 +9.33 at 5068.46, S&P 500 -3.01 at 2092.83
Volume: trade was above average with 766-M/shares changing hands on the NYSE.
The stock market ended the week down for a 2nd week running. The S&P 500 shed 0.1% Friday, losing 0.7 on the week, the NAS 100 (+0.2%) outperformed, ending (-0.03%) in the 1st week of June.
Greece did not make Friday’s debt payment to the International Monetary Fund (IMF), opting instead to bundle all June payments into a single installment of EUR1.60-B, to be paid on 19 June. This (technical default) allows discussions to continue, but it weighed on sentiment in Europe. Greek Prime Minister Alexis Tsipras addressed the Greek parliament, saying the proposals received from the lenders are unrealistic and that debt restructuring must be included in any potential agreement.
The Organization of the Petroleum Exporting Countries (OPEC) met in Vienna, electing to maintain its current production target at 30-M BPD.
WTI Crude Oil ended + 1.9% at 59.13 bbl.
The energy stock sector (+0.7%) ended in the lead, with other stock sectors; financials (+0.6%) and industrials (+0.1%) posting gainers.
The US Dollar (.DXY) Index higher by 0.9%, which resulted from a better than expected NFPs Report for May.
US Treasuries dove in reaction to the NFPs report with the 10-yr yield spiking as many as 13 bpts to 2.44% before ending at 2.40% (+9 bpts). Selling in the 2-yr T-Note pushed its yield up to 0.71% (+5 bpts), its highest level since Y 2010. On the week, the benchmark 10-yr yield rose 28 bpts.
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8 stock sectors posted losses with defensively-oriented utilities (-1.3%) and consumer staples (-1.4%) were pressured by high-yielding members as they lost some attractiveness relative to Treasuries. For the week, the utilities sector lost 4.2%.
The countercyclical groups
The healthcare stock sector (Unch) settled just below the flat line.
The iShares Nasdaq Biotechnology ETF (NYSEArca:IBB) 367.04, +4.25 gained 1.2% and helped the NAS 100 finish ahead of the broad market while the S&P 500 hit resistance at its 50-Daoy MA at 2,100, and faded on weakness in most stock sectors.
Contributing to the NAS 1oo strength was the high-beta chipmaker group. The PHLX Semiconductor Index added 0.1%.
Intel (NASDAQ:INTC) 31.84, -0.47, and ASML (NASDAQ:AMSL) 109.10, -1.49 offset gains in 21 of 30 index components, the broader technology stock sector (-0.3%) ended among the laggards.
The financials (+0.6%) spent the day in the Green, with banks expected to benefit from rising rates at the longer end of the curve. On the week, the financial sector gained 0.8%.
The industrial stock sector (+0.1%) posted a gainer on strength among transportation names. The Dow Jones Transportation Average climbed 0.9%, extending its weekly advance to 2.5%.
Economic data released included Nonfarm Payrolls and Consumer Credit:
- NFPs added 280,000 jobs in May after adding a revised 221,000 from 223,000 in April, consensus expected an increase of 225,000
- Nonfarm private payrolls increased by 262,000 jobs (consensus 225,000), up from a 206,000 increase in April
- Average hourly earnings increased 0.3% in May (consensus 0.2%) after increasing only 0.1% in April. The May increase, combined with increase in payrolls, pushed aggregate earnings up 0.5%
- The average workweek was flat at 34.5 hrs
- The unemployment rate increased to 5.5% in May from 5.4% in April while the consensus expected no change at 5.4%
- The entire increase in the unemployment rate was due to discouraged workers returning to the labor force. If the labor force remained at its April mark, the unemployment rate would have declined to 5.3%
- The Consumer Credit report for April showed an increase of $20.50-B higher than the consensus estimate of $16.80-B
Monday
No data reports
Have a terrific weekend.
HeffX-LTN
Paul Ebeling
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