Market Action – June 1, 2020

U.S. Equity Indices

DJIA - 25,475.02 S&P 500 - 3,055.73 NASDAQ - 9,552.05

+$91.91 (+0.36%)

+$11.42 (+0.38%)

+$62.18 (+0.66%)

Metals

Gold - $1,752.10 Silver - $18.76 Copper - $2.463

+$1.7999 (+0.10%)

-$0.067 (-0.36%)

-$0.0075 (-0.30%)

Oil & Gas

WTI Crude - $35.49 Brent Crude - $38.49 Henry Hub Natural Gas - $1.783

+$0.05 (+0.14%)

+$0.17 (+0.44%)

+$0.009 (+0.51%)

Asian Equity Indices

NIKKEI - 22,248.05 SHANGHAI - 2,917.12 HSI - 23,863.71

+$185.66 (+0.84%)

+$1.69 (+0.06%)

+$131.19 (+0.55%)

European Equity Indices

FTSE 100 - 6,166.42 DAX - 11,586.85 CAC 40 - 4,762.78

+$89.82 (+1.48%)

-$194.28 (-1.65%)

+$67.34 (+1.43%)

Bonds

US 10yr (0.653%) Bund 10yr (-0.408%) Japan 10yr (0.002%)

-0.009

-0.016

+0.001

Foreign Exchange

Euro/USD - 1.1124 USD/Japanese Yen - 107.69 U.K. Pound/USD - 1.2479

-0.001 (-0.09%)

+0.11 (+0.10%)

-0.0013 (-0.10%)

News Updates

Protests related to George Floyd’s tragic death are shaking major cities throughout the country. Investors seem to be worried about Trump’s statement threatening to deploy U.S. military in order to stop the riots around the country. This, combined with U.S.-China Tensions seem like a bad recipe going into June. 

Facebook had 600 employees stage a virtual walkout on Monday due to Mark Zuckerbergs stance related to President Donald Trump’s statement “when the looting starts, the shooting starts”. Unlike Twitter, Facebook stated that Trump’s comment did not break the terms of Facebook and allowed it to stay posted. Many workers felt this is against the company’s values and protested the situation. 

Last week China approved a national security bill which allows China increased control over Hong Kong. 

In response, Trump held an announcement on Friday where he said that the U.S. is ending special treatment towards Hong Kong. Leading up to the announcement investors were unsure whether Trump would impose more drastic measure, for example, pulling out of the Phase 1 Trade Deal. Luckily, that wasn’t the case and investors had a boost of confidence leading to strong gains on the last day of May. 

After Trump said he would revoke special treatment for Hong Kong, China asked state-owned firms to stop buying pork and soy beans from the U.S.

In China results from a private survey for the Caixin/Markit Manufacturing Purchasing Managers Index were released over the weekend. The Caixin/Markit PMI was 50.7 for the month of May, beating the expection of 49.6 and April’s result of 49.4. 

On Sunday, the Chinese government released the official May PMI of 50.6, slightly less than April’s 50.8. In both the private survey and the government data a value of 50+ implies expansion and below 50 implies contraction. The difference between the two surveys is that the offical survey mainly tracks large businesses and state-owned companies, and the Caixin/Markit survey tracks more small and medium sized businesses. 

 

Big Movers

Today we saw big movers like Carnival Cruise (+6.73%), Royal Carribean (+7.27%), Delta (+3.8%), Marriott (+7.4%), EPR (+8.39%), Tesla (+7.56%) and Simon Property Group (+6.76%).

About the author: Dominick Muniz
Creator, web-developer, and writer at The Trading Space.

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