Investment Commentary – June 1st, 2016
Market Indices as of Market Close June 1st, 2016
Dow 17,789 (2.09% YTD)
S&P 2,099 (2.71% YTD)
NASDAQ 4,952 (-1.10% YTD)
Global Dow 2,336 (2,033 52 week low /2,606 high)
10-year Treasury 1.84 (1.53 52 week low /2.50 high)
Gold 1,214 ($1,049 52 week low /high $1,308)
Oil $48.87 ($31.61 52 week low /high $63.77)
Wall St. Notches minor gains as economic data pours in
U.S. stocks fluctuated before closing slightly higher on Wednesday as investors processed data on global manufacturing, U.S. auto sales and inflation for clues about the Federal Reserve’s next interest rate hike.
The NASDAQ eked out a gain to close higher for a sixth straight session.
Global manufacturing activity remained stuck in a rut last month with factory output from Asia, Europe and the Americas barely improving, surveys released on Wednesday showed.
But major U.S. stock indexes recovered from declines during the session after a report showed U.S. manufacturing grew for a third straight month in May. Stocks also improved as oil prices pared losses.
A fuller picture of the economy will come with Thursday’s ADP employment report and Friday’s payrolls data.
“There’s an abundance of economic data this week that investors are confused on how to digest,” said Jonathan Corpina, senior managing partner for Meridian Equity Partners in New York.
The Dow Jones industrial average .DJI rose 2.47 points, or 0.01 percent, to 17,789.67, the S&P 500 .SPX gained 2.37 points, or 0.11 percent, to 2,099.33 and the Nasdaq Composite .IXIC added 4.20 points, or 0.08 percent, to 4,952.25.
Seven of 10 S&P sectors ended higher, while telecoms .SPLRCL were the worst performers. The healthcare sector .SPXHC tallied its sixth straight day of gains.
JP Morgan: Thought of the week
In a volatile year for investors, gold has regained its shine. The precious metal had its best
first quarter for decades, rising 16%, as interest rates fell and central banks expanded their
Use of unconventional monetary policy tools. That good performance carried on into the
second quarter. On 2 May, gold was up more than 21% for the year, but has since fallen by
almost 5%. This reminds us that gold is not a substitute for traditional portfolio anchors
such as cash, which doesn’t lose money in nominal terms. So what is the outlook for gold?
The era of extraordinary central bank action is far from over and related concerns will
continue to bring buyers into the asset. However, if growth proves resilient in the United
States and interest rates rise there, gold may lose some its shine
THIS DAY IN FINANCIAL HISTORY
June 1st, 1812: Economic Strangle Hold Causes War Of 1812
On this day in 1812, President James Madison, tired of the toll British ships were inflicting on the United States’ merchant vessels, urged congress to declare war on Great Britain. Madison had tried embargos and non-intercourse acts before to try and rebuff the British but all had failed, causing him to urge a declaration of war.
The views presented are not intended to be relied on as a forecast, research or investment advice and are the opinions of the sources cited and are subject to change based on subsequent developments. They are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investments.