Market Action – June 3, 2020

Daily Market Update

Here is your daily update regarding the market activity on June 3, 2020. Today we saw equity prices rise for another day 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. Several factors are keeping equity prices upbound such as: low interest rates, global central bank stimulus, global fiscal stimulus and hopes on the successful opening of global economies. These seem to outweigh everything else right now as people realize that coronavirus damage won’t last forever. The next threat to worry investors will be rising tensions between the U.S. and China. There hasn’t been much progress within the dialogue but there will certainly be developments coming soon. 

U.S. Equity Indices

DJIA - 26,269.89 S&P 500 - 3,122,87 NASDAQ - 9,682.91

+$527.24 (+2.05%)

+$42.05 (+1.36%)

+$74.54 (+0.78%)

Metals

Gold (Aug'20) - $1,700.40 Silver (Jul'20) - $17.945 Copper (Jul'20)- $2.4845

-$33.60 (-1.94%)

-$0.315 (-1.73%)

-$0.0085 (-0.34%)

Oil & Gas

WTI Crude (Jul'20)- $36.68 Brent Crude (Aug'20) - $39.38 Henry Hub Natural Gas (Jul'20)- $1.804

-$0.13 (-0.35%)

-$0.19 (-0.48%)

+$0.027 (+1.52%)

Asian Equity Indices

NIKKEI - 22,613.76 SHANGHAI - 2,923.37 HSI - 24,325.62

+$288.15 (+1.29%)

+$1.97 (+0.07%)

+$329.68 (+1.37%)

European Equity Indices

FTSE 100 - 6,382.41 DAX - 12,487.36 CAC 40 - 5,022.38

+$162.27 (+2.61%)

+$466.08 (+3.88%)

+$163.41 (+3.36%)

Bonds

US 10yr (0.751%) Bund 10yr (-0.353%) Japan 10yr (0.008%)

+0.071

-0.004

+0.006

Foreign Exchange

Euro/USD - 1.1235 USD/Japanese Yen - 108.92 U.K. Pound/USD - 1.2577

+0.0066 (+0.59%)

+0.26 (+0.24%)

+0.0028 (+0.22%)

News Updates

Companies cut less U.S. workers in May than analysts expected. ADP released a private payroll survey reporting that there were 2.76 million job losses last month. This number is lower than the 8.75 million that economists were expecting. The substancial discepency between the actual and the estimate are unknown. More information describing the amount of losses in different sectors is found in the article below. 

CNBC’s article: https://www.cnbc.com/2020/06/03/adp-private-payrolls-may-2020.html

 

Senate passed bill today to give businesses flexiblity in spending coronavirus aid, sends it to Trump. The bill extends the deadline for companies to rehire workers, how to get loan forgiveness and the percentage of the loan which should be dedicated to payroll. 

CNBC’s article: https://www.cnbc.com/2020/06/03/sen-ron-johnson-blocks-ppp-small-business-loan-legislation.html

Trump administration announced today new guidance related to potentially allowing investment opportunites in private equity funds within defined contribution plans, like 401k accounts. These would only be accessable through vehicles like target-date funds, not direct investments. The goal is to allow different options for investing within these accounts. Private equity investments are viewed as riskier because their financial reporting practices differ from public companies, and because it is harder to sue. These opportunities offer big rewards and big risks. If an investor is unfamilar with private equity or is uncomfortable with the risk, they should stay away. 

Fox Business News’ article: https://www.foxbusiness.com/personal-finance/401k-retirement-savers-private-equity-investments

 

Prosecuters on Wednesday filed a tougher charge against the officer that killed George Floyd and gave the other 3 officers at the scene charges of aiding and abetting second-degree murder and second-degree manslaugher. More information is found in the article below.

Market Watch, Associated Press article: https://www.marketwatch.com/story/murder-charge-against-minneapolis-officer-set-to-be-upgraded-to-second-degree-by-minnesota-attorney-general-keith-ellison-2020-06-03?mod=home-page

 

Big Movers

To the upside:

Simon Property (SPG, +14.862%)

Boeing Co (BA, +12.948%)

United Airlines (UAL, +12.504%)

MGM Resorts (MGM, +11.319%)

Raytheon Technologies Corp (RTX, +6.42%)

To the Downside:

Campbell Soup (CPB, – 6.133%)

Activision Blizzard (ATVI, -4.193%)

Tyson Foods Inc (TSN, -3.84)

Electronic Arts (EA, -3.621%)

Dollar Tree (DLTR, -2.485)

Walmart (WMT, -0.379%)

Intel Corp (INTC, -0.306%)

 

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

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