US markets ended the day with a mixed bag of positive and negative data, as well as pre-NFP caution.
The S&P 500 rose to a new high, but the Nasdaq dipped, and the DJI gained only little.
The ADP Employment Change in the United States was stronger than projected in June, and Fedspeak is hawkish.
The ISM Manufacturing PMI in the United States, as well as risk headlines, will be important to monitor ahead of the NFP.
As the hawkish Fed and upbeat data jiggle the coronavirus (COVID-19) problems, US stocks ended the first half of 2021 on a mixed note. Prior to Friday’s Non-farm Payrolls and quarter-end positioning, risk barometers were also underperforming. The Biden administration’s campaign for specific controls on corporate behemoths is also having an impact on the markets.
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The Dow Jones Industrial Average (DJI) rose 0.61 percent, or 210 points, to 34,502, while the S&P 500 rose to an all-time high of 4,302 before settling around 4,300. The Nasdaq, on the other hand, fell 0.17 percent or 24.4 points to 14,504, marking a retreat from the previous day’s record high.
It’s worth noting that the US dollar index (DXY) had its best month since November 2016, but gold had its worst month in 4.5 years in June.
Thailand, Indonesia, Malaysia, and Australia are only a few of the important Asia-Pacific countries that have recently struggled with the covid form due to sluggish immunizations. Furthermore, the Delta coronavirus strain has not yet been eradicated in the United Kingdom.
The ADP Employment Change in the United States increased to 692K, exceeding the 600K projection, but lagging behind the downwardly revised 886K. Furthermore, in June, the Chicago PMI fell below expectations and previously to 66.1, although Pending Home Sales increased from -0.8 percent projected and -4.4 percent previous readings to +8.0 percent in May.
Despite the generally positive news, comments from Dallas Fed President Robert Kaplan, who supports a faster tapering, knocked on US equity indexes. Additionally, the Wall Street Journal (WSJ) published an article implying US President Joe Biden’s drive for tougher rules for big businesses, which knocked on technology stocks.
Among these trades, Intellia Therapeutics set a new high, bolstered by news that the firm expected $600 million from a recent stock offering, before reversing course with 7.0 percent daily gains at the close. Furthermore, even though the company reported mixed fiscal first-quarter earnings, with profit missing projections, Bed Bath & Beyond rose 11%.
Investors will be watching today’s US ISM Manufacturing PMI reading for more explanation after seeing encouraging indications for Friday’s US Nonfarm Payrolls (NFP). Updates on the coronavirus (COVID-19) and Fedspeak will also be significant, as will weekly Jobless Claims.
Read: ISM Manufacturing Predictions for June in the United States Although expansion is expected to continue, how serious is the labor shortage?/n
