S&P500, +1.05%, 2,873.34
Nasdaq, +1.94%, 7,417.29
Nikkei Futures, +0.87%, 20,920.0

S&P 500 advanced 1.05% on Friday, and 4.4% for the week, after soft employment data for May increased expectations for the Fed to cut rates this year. Leadership from some of the stock market’s biggest names set the pace. This optimism contributed to big gains in Facebook (FB 173.35, +5.02, +3.0%), Apple (AAPL 190.15, +4.93, +2.7%), Amazon (AMZN 1804.03, +49.67, +2.8%), Alphabet (GOOG 1066.04, +21.70, +2.1%), and Microsoft (MSFT 131.40, +3.58, +2.8%). In turn, their outperformance contributed to the leadership from the S&P 500 information technology (+1.9%), consumer discretionary (+1.6%), and communication services (+1.5%) sectors. The financials (-0.2%) and utilities (-0.7%) sectors, however, were left out of the rally.

In earnings news, shares of Beyond Meat (BYND 138.65, +39.15) shot up 39.4% on positive results and guidance. Zoom Video Communications (ZM 94.05, +14.62) posted a humbler, but still impressive, gain of 18.4% after it also pleased investors with its earnings results and guidance.

S&P500, +0.61%, 2,843.49
Nasdaq, +0.78%, 7,275.93
Nikkei Futures, +0.76%, 20,888.0

The stock market extended its rally to a third consecutive day on Thursday, boosted by news that the U.S. may delay the proposed 5% tariff rate on all imports from Mexico. A turnaround in oil prices ($52.64, +$0.98, +1.9%) padded the rebound in the energy sector (+1.7%), semiconductor stocks boosted the information technology sector (+1.1%), and the trade-sensitive materials sector (+1.1%) also outperformed. The Philadelphia Semiconductor Index advanced 1.3%.

In corporate news, shares of Advanced Micro Devices (AMD 31.82, +2.32) surged 7.9% after the stock was upgraded to Equal-Weight from Underweight at Morgan Stanley. Fiat Chrysler (FCAU 13.30, +0.11, +0.8%) withdrew its merger proposal to Renault (RNSDF) due to unfavorable political conditions in France.

Currency Market Wrap

As of Thu, Jun 6th, Singapore Time zone UTC+8

Dollar Index +0.23%, 97.29
USDJPY, +0.17%, $108.32
EURUSD, -0.21%, $1.1228
GBPUSD, -0.08%, $1.2687
USDCAD, +0.22%, $1.3422
AUDUSD, -0.31%, $0.6970
NZDUSD, +0.29%, $0.6626

The ADP Employment report showed an estimated 27,000 jobs were added to private-sector payrolls in May, well below the consensus estimate of 170,000 and the prior month’s downwardly revised 271,000 (from 275,000). The data suggest payroll gains in Friday’s jobs report in the Labor Department could be lower than expected, which might add to investor bets that the Fed will cut interest rates this year to shore up the economy. A recent string of weak reports on retail sales, factory orders and home purchases indicate growth is slowing as the trade war weighs on businesses.

The 2-yr yield finished four basis points lower at 1.84%, and the 10-yr yield finished unchanged at 2.12%. The U.S. Dollar Index advanced 0.23% to 97.29.

Stock Market Wrap

S&P500, +0.82%, 2,826.15
Nasdaq, +0.76%, 7,220.90
Nikkei Futures, +1.92%, 20,750.0

S&P 500 advanced 0.82% on Wednesday, benefiting from follow-through buying interest on hope that the Fed will cut rates amid a slowing growth environment.

Separately, notable movers in the stock market included Salesforce (CRM 158.44, +7.63, +5.1%) and Campbell Soup (CPB 41.93, +3.82, +10.0%), which pleased investors with their earnings reports.

S&P500, -0.28%, 2,744.45
Nasdaq, -2.10%, 6,978.02
Nikkei Futures, +0.50%, 20,425.0

S&P 500 lost 0.28% on Monday, as shares of big tech companies fell on various reports that heightened antitrust concerns. Lingering trade and growth concerns also helped curb risk sentiment and underpin the strength in U.S. Treasuries.

Facebook (FB 164.15, -13.32, -7.5%), Alphabet (GOOG 1036.23, -67.40, -6.1%), Amazon (AMZN 1692.69, -82.38, -4.6%), and Apple (AAPL 173.30, -1.77, -1.0%) were all singled out in various reports indicating that the companies could face antitrust scrutiny by the Department of Justice and/or Federal Trade Commission. These companies represent some of the most widely-held stocks in the U.S., and their out-sized losses weighed heavily on the Nasdaq and on the S&P 500 communication services (-2.8%), information technology (-1.8%), and consumer discretionary (-1.2%) sectors. The other eight S&P 500 sectors finished higher, led by materials (+3.4%), to provide offsetting support.

CURRENCY MARKET WRAP  

As of Sat, Jun 1st, Singapore Time zone UTC+8

Dollar Index -0.40%, 97.75        
USDJPY, -0.96%, $108.28  
EURUSD, +0.34%, $1.1169    
GBPUSD, +0.19%, $1.2632    
USDCAD, -0.14%, $1.3514    
AUDUSD, +0.47%, $0.6939
NZDUSD, +0.49%, $0.6536

Global growth concerns were evidenced by the 5.2% drop in WTI crude ($53.48/bbl, -$2.92) and investors seeking safety in U.S. Treasuries.The 2-yr yield dropped 12 basis points to 1.94%, and the 10-yr yield dropped nine basis points to 2.14%. The U.S. Dollar Index fell 0.4% to 97.75.

The big headline on Friday, which helped accelerate weekly losses was Trump announcing a 5% tariff rate on all goods imported from Mexico starting on June 10. The tariff rate will increase incrementally during the summer and reach 25% on Oct. 1 unless Mexico takes actions to curb the flow of undocumented migrants entering the U.S. Another trade dispute on top of a U.S.-China trade war with no clear end in sight fueled ongoing concerns that trade tensions will lower economic, and earnings, growth prospects.

China added to these fears after it announced that it is drafting a list of unreliable foreign entities that harm the interests of its firms, increasing speculation about Chinese retaliation against the U.S.

STOCK MARKET WRAP 

S&P500, -1.32%, 2,752.06
Nasdaq, -1.62%, 7,127.96
Nikkei Futures, -1.86%, 20,540.0

Friday’s 1.32% decline in the S&P 500 sent it below its 200-day moving average (2776) and extended its weekly decline to 2.6%. The Dow Jones Industrial Average (-1.4%), the Nasdaq Composite (-1.5%), and the Russell 2000 (-1.4%) extended their weekly losses to 3.0%, 2.4%, and 3.2%.

In corporate news, shares of General Motors (GM 33.34, -1.48, -4.3%) underperformed on the Mexico tariff threat. Dell Technologies (DELL 59.55, -6.86, -10.3%), Gap (GPS 18.68, -1.92, -9.3%), and VMware (VMW 176.98, -14.11, -7.4%) disappointed investors with their earnings results, while Uber (UBER 40.41, +0.61, +1.5%) pleased investors with its results.

S&P500, +0.21%, 2,788.86
Nasdaq, +0.40%, 7,245.40
Nikkei Futures, -0.84%, 20,882.5

The S&P 500 finished higher by 0.2% after finding some support at its 200-day moving average (2776). The S&P 500 real estate (+0.7%), information technology (+0.6%), health care (+0.5%), and consumer discretionary (+0.5%) sectors outperformed the broader market. The Philadelphia Semiconductor Index (+0.7%) advanced for the second straight day.

The S&P 500 energy sector (-1.2%) was the worst-performing group on Thursday, as oil prices ($56.40/bbl, -$2.44, -4.1%) tumbled on global growth concerns. Shares of Dollar General (DG 127.00, +8.49, +7.2%) and Dollar Tree (DLTR 98.31, +2.99, +3.1%) gave the consumer discretionary sector a boost following their earnings results/guidance. PVH Corp. (PVH 84.49, -14.76, -14.9%), however, offset some of their strength after it disappointed investors with its lower guidance.

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Currency Market Wrap

As of Thu, May 30, Singapore Time zone UTC+8

Dollar Index +0.18%, 98.13
USDJPY, +0.19%, $109.57
EURUSD, -0.29%, $1.1136
GBPUSD, -0.23%, $1.2629
USDCAD, +0.19%, $1.3514
AUDUSD, -0.10%, $0.6919
NZDUSD, -0.45%, $0.6514

Contributing to the day’s risk-aversion were Chinese state media suggesting that Beijing could use its dominant position in rare earth minerals to restrict exports in a trade war against the U.S. Although it was not a new claim, investors continued to seek safety in Treasuries with few signs of trade progress.

At one point during the day, the 3-month yield was 14 basis points higher than the 10-yr yield, which was its biggest difference since the financial crisis and helped feed into the persisting growth concerns. Demand for U.S. Treasuries did lose traction during the afternoon, though, bringing yields slightly higher from session lows. The 2-yr yield finished four basis points lower at 2.08%, and the 10-yr yield finished three basis points lower at 2.23%. The U.S. Dollar Index increased 0.18% to 98.13. WTI crude declined 0.5% to $58.84/bbl.

Bank of Canada held key interest rates steady at 1.75%, citing accumulating evidence the economy was showing signs of slowing down in the latter half of last year and into the start of this one, before picking up in the second quarter of 2019. The BoC saw the escalating trade war as a problem for global growth and warned that China restrictions have a direct impact on Canada’s exports.

Stock Market Wrap

S&P500, -0.69%, 2,783.02
Nasdaq, -0.85%, 7,216.86
Nikkei Futures, -1.64%, 20,882.5

S&P 500 was down as much as 1.3% on Wednesday amid trade and growth concerns, while the advance in U.S. Treasuries helped widen a key inversion within the yield curve. A rebound in the last hour of action, however, helped the benchmark index finish lower by 0.69% and reclaim its 200-day moving average (2776) after falling below the key technical level during the day.

No S&P 500 sector finished higher, but the materials (-0.1%) and financials (-0.1%) sectors did finish just below their unchanged marks. The utilities (-1.3%) and real estate (-1.2%) sectors underperformed. The SPDR S&P Retail ETF (XRT 40.50, -0.92, -2.2%) was a notable laggard in the stock market following poor results and guidance from Abercrombie & Fitch (ANF 18.39, -6.62, -26.5%) and Canada Goose (GOOS 33.89, -15.13, -30.9%). General growth concerns also helped overlook upbeat results and guidance from Dick’s Sporting Goods (DKS 33.67, -2.11, -5.9%).

CURRENCY MARKET WRAP  

As of Wed, May 29, Singapore Time zone UTC+8

Dollar Index +0.21%, 97.94
USDJPY, -0.13%, $109.36
EURUSD, -0.21%, $1.1169
GBPUSD, -0.16%, $1.2659
USDCAD, +0.39%, $1.3488
AUDUSD, +0.09%, $0.6926
NZDUSD, -0.02%, $0.6544

Trade progress remained elusive, while headlines continued to swirl. Trump said he expects a deal in the future but said the U.S. is not ready for one at this moment. Demand for U.S. Treasuries remained strong, sending yields even lower, amid the trade uncertainty and negative disposition in equities. The 2-yr yield declined four basis points to 2.12%, and the 10-yr yield declined six basis points to 2.27% — eight basis points below the yield on the 3-month bill. The U.S. Dollar Index advanced 0.21% to 97.94. WTI crude rose 0.8% to $59.11/bbl.

STOCK MARKET WRAP 

S&P500, -0.84%, 2,802.39
Nasdaq, -0.31%, 7,278.38
Nikkei Futures, -0.79%, 21,033.0

S&P 500 lost 0.84% on Tuesday, while U.S. Treasuries rallied, as investors continued to show little enthusiasm for risk assets. Tuesday’s decline wiped out an early gain for the benchmark index and sent it back near the 2800 level as losses accelerated into the close.

The S&P 500 consumer staples (-1.8%), utilities (-1.6%), and health care (-1.4%) sectors led the market lower. The Dow Jones Transportation Average (-1.3%) was another laggard, as investors remained concerned about a protracted trade war with China. The communication services sector (+0.2%) was the lone sector to finish higher.

Shares of Advanced Micro Devices (AMD 29.03, +2.59, +9.8%), Total System (TSS 118.84, +5.39, +4.8%), and Fiat-Chrysler (FCAU 13.78, +0.93, +7.2%) bucked the broader trend on Tuesday. AMD impressed investors with its new products. Total System confirmed its $21.5 billion merger of equals with Global Payments (GPN 148.87, -4.57, -3.0%). Fiat-Chrysler proposed a merger with Renault (RNSDF), which will reportedly give its preliminary approval, according to Bloomberg.

S&P500, – Closed –
Nasdaq, – Closed –
Nikkei Futures, +0.48%, 21,202.5

Currency Market Wrap

As of Sat, May 25, Singapore Time zone UTC+8

Dollar Index -0.26%, 97.61
USDJPY, -0.22, $109.31
EURUSD, +0.17%, $1.1204
GBPUSD, +0.38%, $1.2713
USDCAD, -0.27%, $1.3438
AUDUSD, +0.36%, $0.6924
NZDUSD, +0.49%, $0.6553

U.S. Treasuries finished lower, retreating modestly from a two-day advance. The 2-yr yield increased five basis points to 2.16%, and the 10-yr yield increased three basis points to 2.32%. The U.S. Dollar Index declined 0.3% to 97.58. WTI crude rebounded 1.4% to $58.62/bbl.

In UK Politics, Theresa May has announced her departure from 10 Downing Street. In a speech on Friday following a meeting with Sir Graham Brady, the chair of the 1922 Committee of Tory backbenchers, the prime minister said she would stand aside on Friday 7 June, with the process to select a new Conservative party leader starting this week. In an emotional statement, she said she had done her best to deliver Brexit and it was a matter of “deep regret” that she had been unable to do so. The Conservative party chairman, Brandon Lewis, confirmed that nominations to replace May would close in the week beginning 10 June. Then successive rounds of voting by Tory MPs will take place to decide which candidates will be put a vote of the party’s members. That process should be completed by the end of June.

Stock Market Wrap

S&P500, +0.14%, 2,826.06
Nasdaq, -0.10%, 7,300.96
Nikkei Futures, +0.44%, 21,100.0

S&P 500 increased 0.14% on Friday in a lower-volume trading session in front of the holiday weekend. Supporting Friday’s positive bias was Trump saying there is still a good possibility of a trade deal with China and that a solution to the Huawei matter could be included in that deal. The benchmark index finished the week lower by 1.2%. The S&P 500 financials (+0.8%) and materials (+0.5%) sectors outperformed. The consumer staples (-0.4%) and utilities (-0.2%) sectors were the lone groups in the red.

Shares of Foot Locker (FL 44.40, -8.43) dropped 16.0% after the company provided disappointing earnings results and guidance, while shares of Intuit (INTU 257.48, +16.17) climbed 6.7% after it provided upbeat results and guidance. In M&A news, Total System (TSS 113.45, +13.83, +13.9%), according to CNBC, said it is nearing a deal to be acquired by Global Payments (GPN 153.44, +5.48, +3.7%) for $20 billion in an all-stock transaction.