NEW YORK (Dow Jones) — Wall Street fell short of opening gains on Friday, failing to build on the momentum of the past few days. On a weekly basis, however, there is a big plus in front of the indices; the S&P 500 has even had its longest winning streak since November 2021 with five weekly gains. Although the S&P 500, like the Nasdaq Composite, marched to new 14-month highs early in the course, the air then started to get thinner – especially on the big expiry date, which usually shows increased volatility.
The Dow Jones index rose 1.3 percent to 34,408 points. The S&P 500 was up 1.2 percent and the Nasdaq Composite was up 1.1 percent. The 1,169 (Thursday: 2,192) winners on the Nyse faced 1,792 (791) losers. 82 (82) shares closed unchanged.
A weak day is nothing unusual after a strong week, they said. What is more surprising is how well the markets have held up. Because traders are finding it increasingly difficult to explain the recent winning streak. At least the uncertainty about the further interest rate path in the USA and the euro zone, the respective interest rate peaks were now more clearly apparent. Nevertheless, the forthcoming interest rate hikes should not necessarily encourage people to buy shares. Because both the US Federal Reserve and the European Central Bank had made hawkish statements about the future interest rate path.
Meanwhile, China was repeatedly cited as an argument in favor of equities. Because the interest rates that have been lowered there so far point very clearly in the direction of stimulating the economy. This was underpinned by media reports that the Chinese government was planning an economic stimulus package and was already considering concrete steps to finance it. “China could become the economic engine again,” said a voice in the trade.
Bond rates are coming back
On the bond market, the quotations came back after the previous day’s increase, so the yields – especially at the short end of the market – rose. In view of the hawkish statements made by the central bankers on both sides of the Atlantic, traders gave the market a little more realism. The market’s skepticism about the monetary policy with further rising interest rates is exaggerated, a rethinking of the Fed towards interest rate cuts is unlikely in the short and medium term, it was said. Richmond Fed President Tom Barkin recently recalled this, emphasizing that further rate hikes are needed to combat inflation.
On the foreign exchange market, the dollar stabilized after the previous day’s slide after the ECB’s interest rate signals had fueled the euro. Investors are now turning their attention to the Fed’s pending rate hikes. However, the common currency stayed well above the $1.09 mark at the elevated level. The yen came under pressure against the greenback following the confirmation of ultra-loose monetary policy in Japan.
Oil prices advanced in late trade. Here, the participants were again more optimistic about global demand. Among other things, they referred to the latest monthly report from the IEA, which expects strong growth in the second half of the year. The measures apparently planned by Beijing to stimulate the economy were also mentioned. Meanwhile, little was happening in gold.
Adobe convinces
Among individual stocks, Adobe rose 0.9 percent. The software maker posted better-than-expected results in the second quarter. The result was supported by strong software demand driven by advances in artificial intelligence (AI). Adobe expects further growth for the current quarter.
Walt Disney fell 1.7 percent. The entertainment company loses Christine McCarthy, at least temporarily, as senior executive vice president and CFO for family reasons. Kevin Lansberry, Disney Parks, Experiences and Products executive vice president and CFO, will serve as interim CFO effective July 1.
Virgin Galactic jumped 16.7 percent. The company plans to begin offering space tourism flights later this month. Enovix advanced 10.9 percent. The battery maker hit its quarterly production target ahead of schedule.
Squarespace gained 4.3 percent. The provider of digital tools for creating websites has signed a definitive agreement with Alphabet subsidiary Google to acquire about 10 million domains from the search giant. A price for the transaction was not mentioned.
Clene plummeted 18.8 percent. The biopharmaceutical company plans to raise fresh capital by issuing common stock and related warrants. The specialty chemicals company Cabot has cashed in on its profit forecast, the course is down by 10 percent.
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INDEX last +/-% absolute +/-% YTD
DJIA 34,299.12 -0.3% -108.94 +3.5%
S&P 500 4,409.59 -0.4% -16.25 +14.9%
Nasdaq Comp. 13,689.57 -0.7% -93.25 +30.8%
Nasdaq-100 15,083.92 -0.7% -101.56 +37.9%
US Bonds
Term Yield Bp to VT Yield VT +/-Bp YTD
2 years 4.71 +6.1 4.65 28.7
5 years 3.98 +6.6 3.92 -1.9
7 years 3.88 +6.5 3.82 -8.7
10 years 3.76 +4.3 3.72 -11.6
30 years 3.85 +1.4 3.84 -11.7
FOREX last +/- % Fri, 8:21 Thu, 17:29 % YTD
EUR/USD 1.0938 -0.1% 1.0951 1.0928 +2.2%
EUR/JPY 155.12 +1.0% 153.94 153.54 +10.5%
EUR/CHF 0.9782 +0.2% 0.9758 0.9765 -1.2%
EUR/GBP 0.8529 -0.4% 0.8558 0.8565 -3.6%
USD/JPY 141.85 +1.1% 140.68 140.52 +8.2%
GBP/USD 1.2823 +0.3% 1.2798 1.2760 +6.0%
USD/CNH (Offshore) 7.1281 +0.1% 7.1172 7.1365 +2.9%
Bitcoin
BTC/USD 26,351.58 +3.1% 25,548.13 24,976.92 +58.8%
ROHOEL last VT-Settlem. +/- % +/- USD % YTD
WTI/Nymex 71.66 70.62 +1.5% +1.04 -10.2%
Brent/ICE 76.57 75.67 +1.2% +0.90 -8.6%
GAS VT Settlem. +/- EUR
Dutch TTF 32.78 41.15 -20.3% -8.37 -51.3%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,956.29 1,957.98 -0.1% -1.69 +7.3%
Silver (Spot) 24.17 23.88 +1.2% +0.29 +0.9%
Platinum (Spot) 986.40 990.50 -0.4% -4.10 -7.6%
Copper futures 3.88 3.90 -0.5% -0.02 +1.7%
YTD relative to previous day’s close
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(END) Dow Jones Newswires
June 16, 2023 16:08 ET (20:08 GMT)
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