US Equity Handover: Indices Shrug Off NFP Miss, Close Higher for Fourth Straight Day
Matt Weller, CFA, CMT June 7, 2019 9:20 PM
See a summary of the top stock themes and trends from today's US session!
- US indices closed higher for the fourth consecutive day to close at a 3-week high.
- Technology (XLK) was the strongest sector today, gaining nearly 2%. Utilities (XLU) were the weakest (-0.7%).
- The May Non-Farm Payrolls report came in soft, with the BLS estimating that the US economy produced only 75k net new jobs in May, well below the expected 175k reading. Adding insult to injury, the previous reports were also revised lower by 75k jobs and hourly earnings grew at just 0.2% m/m.
- The weak jobs report prompted traders to increase bets on a June or July rate cut by the Federal Reserve, with the market-implied odds of a cut rising to 28% and 90% respectively, according to the CME’s FedWatch tool. The greenback was the weakest major currency on the day.
- Both Beyond Meat (BYND) and Zoom Video (ZM) delivered earnings triple plays (beat on earnings, beat on revenues, raised guidance) in their first reports as public companies. BYND +41%, ZM +18%.
*There are no high-impact corporate announcements expected during tomorrow’s Asian session.*
*Data from Refinitiv. Index names may not reflect tradable instruments and not all markets are available in all regions.