Market Action – June 2, 2020

Daily Market Update

Here is your daily update regarding the market activity on June 2, 2020. Today we saw equity prices rise around the globe as investors overlook the current protests and U.S.-China tensions in favor of global economies opening back up after being burdened by coronavirus. 

U.S. Equity Indices

DJIA - 25,742.65 S&P 500 - 3,080.82 NASDAQ - 9,608.38

+$267.63 (+1.05%)

+$25.09 (+0.82%)

+$56.33 (+0.59%)

Metals

Gold (Aug'20) - $1,733.20 Silver (Jul'20) - $18.36 Copper (Jul'20)- $2.494

-$17.1001 (-0.98%)

-$0.467 (-2.48%)

+$0.0235 (+0.95%)

Oil & Gas

WTI Crude (Jul'20)- $36.87 Brent Crude (Aug'20) - $39.63 Henry Hub Natural Gas (Jul'20)- $1.771

+$1.43 (+4.03%)

+$1.31 (+3.42%)

-$0.003 (-0.17%)

Asian Equity Indices

NIKKEI - 22,325.61 SHANGHAI - 2,921.40 HSI - 23,995.94

+$263.22 (+1.19%)

+$5.97 (+0.20%)

+$263.42 (+1.11%)

European Equity Indices

FTSE 100 - 6,220.14 DAX - 12,021.28 CAC 40 - 4,858.97

+$53.72 (+0.87%)

+$434.43 (+3.75%)

+$96.19 (+2.02%)

Bonds

US 10yr (0.682%) Bund 10yr (-0.398%) Japan 10yr (0.002%)

+0.02

+0.018

+0.001

Foreign Exchange

Euro/USD - 1.1163 USD/Japanese Yen - 108.70 U.K. Pound/USD - 1.2548

+0.0029 (+0.26%)

+1.12 (+1.04%)

+0.0056 (+0.45%)

News Updates

Visa sees consumer spending pick up slightly in May. Visa said that U.S. transaction volume fell only 5% in May, compared to the 18% drop they saw in April. The slower pace of decline implies that consumers are becoming more comfortable making purchases as we navigate through coronavirus. 

CNBC’s article: https://www.cnbc.com/2020/06/02/visa-sees-a-pickup-in-consumer-spending-in-may.html

 

GDPNow, using FED gauges to evaluate the economy, released information stating that they are predicting a 52.8% decline in GDP for Q2 of 2020. 

CNBC’s article: https://www.cnbc.com/2020/06/02/gdp-is-now-projected-to-fall-nearly-53percent-in-the-second-quarter-according-to-a-fed-gauge.html

 

The index of national factory activity tracked by the Institute for Supply Management (ISM) saw activity increasing to a reading of 43.1 in May compared to April’s 41.5, which was the lowest reading since the great recession in 2009. A reading below 50 implies a contraction in manufacturing, which accounts for 11% of the U.S. economy.  

CNBC’s article: https://www.cnbc.com/2020/06/01/us-manufacturing-activity-pulls-off-11-year-low.html

 

Today we saw an increase in Treasury yields in anticipation of the U.S. economy returning. We saw yields drop through the weekend due to growing tensions with China. In the Market Action update I released yesterday, I mentioned that China asked state-owned companies to stop buying soybeans and pork from the U.S. in response to Trump saying the U.S. will treat giving special treatment to Hong Kong. Reuters reported that on Monday state-owned companies in China bought at least 180,000 tons of soybeans. This might imply that the tensions are less severe than previously thought. 

CNBC’s article: https://www.cnbc.com/2020/06/02/treasury-yields-flat-as-markets-monitor-economic-reopening-and-civil-unrest.html

 

After two months of being closed, MGM Resorts International (NYSE: MGM) and Caesars Entertainment Corporation (NASDAQ: CZR) plan to open several casinos in Las Vegas. Both of these companies are opening about 35% of each of their total Las Vegas rooms. Additionally, Wynn Resorts, Limited (NASDAQ: WYNN) and Las Vegas Sands Corp. (NYSE: LVS) are reopening casinos along the strip in Vegas. 

Yahoo Finance’s article: https://finance.yahoo.com/news/las-vegas-casinos-reopen-week-161153123.html

 

Today gun stocks rallied during U.S. social unrest and protesting. Sturm Ruger & Company (RGR) increased 4.3% and Smith & Wesson’s parent company, American Outdoor Brands Corp. (SWBI) popped 10.1%. 

Yahoo Finance’s article: https://news.yahoo.com/dow-gun-stocks-jump-213322193.html

Big Movers

To the upside:

Western Union Co (WU, +11.29%)

Equifax Inc (EFX, +7.785%)

Gap Inc (GPS, +7.685%)

Nordstrom Inc (JWN, +7.173%)

Qualcomm Inc (QCOM, +6.146%)

American Express Co (AXP, +2.398%)

Exxon Mobil Corp (XOM, +2.226%)

Home Depot Inc (HD, +2.192%)

To the Downside:

Novavax Inc (NVAX, -6.02%)

Moderna Inc (MRNA, -3.715%)

Newmont Corporation (NEM, -3.339%)

Wynn Resorts (WYNN, -2.741%)

Gilead Sciences Inc (GILD, -2.528%)

Tesla Inc (TSLA, -1.842%)

Raytheon Technologies Corp (RTX, -1.123%)

 

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

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