Investment Commentary –June 6th, 2017

Market Indices as of Market Close June 6th, 2017
Dow 21,136 (6.95% YTD)
S&P 2,429 (8.51% YTD)
NASDAQ 6,275 (16.57% YTD)
Gold $1,296 (9.13%)
OIL $48.33 (-14.85%)
US 10Y Treasury 2.144 (-30.12%)
Barclay Bond Aggregate (2.48% YTD)

Stocks close lower as consumer-discretionary, industrial sectors weigh
U.S. stocks closed lower Tuesday for a second session as investors exercised caution ahead of the U.K. elections and political uncertainties over former Federal Bureau of Investigation director James Comey’s testimony this week. The Dow Jones Industrial Average DJIA, -0.23% finished down 47.81 points, or 0.2%, at 21,136.23, led lower by shares of Wal-Mart Stores Inc. WMT, -1.66% and Boeing Co. BA, -1.16% The S&P 500 index SPX, -0.28% finished down 6.77 points, or 0.3%, at 2,429.33, with the consumer-discretionary sector down 0.8% and the industrials sector falling 0.6%. The Nasdaq Composite Index COMP, -0.33% closed down 20.63 points, or 0.3%, at 6,275.06.

On Tap for the rest of the week:
Wednesday Consumer credit, U.S. Federal Reserve
Friday Wholesale inventories, U.S. Census Bureau

Headlines around the markets:

Jobs miss
The 138,000 jobs that the U.S. economy generated in May were below expectations, and the government revised its March and April jobs estimates downward. However, unemployment slipped to 4.3%, the lowest in 16 years.
Oil decline
Crude oil prices dropped for the second week in a row, slipping below $48 a barrel. Analysts cited rising U.S. oil output and the Trump administration’s decision on Thursday to withdraw from the Paris Agreement on climate change.
China Policy
China’s currency on Wednesday jumped to its highest level against the U.S. dollar in six months. Traders attributed the sharp gain to intervention by China’s central bank in the wake of a recent downgrade of China’s credit rating by Moody’s Investors Service.

LEADERS & LAGGARDS: This past week’s leaders were Healthcare, consumer goods and technology. Laggards were basic materials.

THIS DAY IN FINANCAL HISTORY: Securities Exchange Act Signed
On this day in 1934, with a stroke of his pen, President Roosevelt signed the Securities Exchange Act. This act was designed to set rules and regulation on the notoriously corrupt New York Stock Exchange that caused the 1929 crash. This legislation also started the Securities Exchange Commission (SEC), which is responsible for monitoring the nation’s brokerage houses and investment banks.

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.