Traders May Take A Breather Following Last Week?s Rally

[ADVFN]( [[Global Email] World Daily Markets Bulletin]( Monday, 05 June 2023 09:27:10 [ADVFN Twitter]( [Monitor]( [Quote]( [Charts]( [News]( [Toplists]( [Boards]( [How to Become a Successful Crypto Trader?]( [Check Out This Video]( --------------------------------------------------------------- US Market Bitcoin [Bitcoin]( DAX [DAX]( Dow Jones [Dow Jones]( Nasdaq [Nasdaq]( The major U.S. index futures are currently pointing to a roughly flat open on Monday, with stocks likely to show a lack of direction following the rally seen to close out the previous week. Traders may look to take a break to assess the outlook for the markets following the strong upward move seen last Thursday and Friday. The rally came amid the passage of legislation raising the U.S. debt ceiling and the release of the closely watched monthly jobs report. With the surge, the Nasdaq reached its best closing level in well over a year, while the S&P 500 set a new nine-month closing high. Trading activity may remain somewhat subdued throughout the week as traders look ahead to next week?s Federal Reserve meeting. The Fed is due to announce its latest monetary policy decision next Wednesday, with the central bank widely expected to pause its recent series of interest rate hikes. Key inflation reports are also likely to be in the spotlight next week, as the data could impact whether the Fed resumes its rate hikes next month. Stocks moved sharply higher over the course of the trading day on Friday, adding to the strong gains posted in Thursday's session. With the continued upward move, the Nasdaq reached its best closing level in well over a year, while the S&P 500 set a new nine-month closing high. The major averages pulled back off their best levels going into the close but still posted strong gains. The Dow spiked 701.19 points or 2.1 percent to 33,762.76, the Nasdaq jumped 139.78 points or 1.1 percent to 13,240.77 and the S&P 500 surged 61.35 points or 1.5 percent to 4,282.37. For the holiday-shortened week, the S&P 500 shot up by 1.8 percent, while the Dow and the S&P 500 both jumped by 2.0 percent. The extended rally on Wall Street came following the release of a closely watched Labor Department report showing U.S. employment surged by much more than expected in the month of May. The report showed non-farm employment soared by 339,000 jobs in May after spiking by an upwardly revised 294,000 jobs in April. Economists had expected employment to climb by 190,000 jobs compared to the jump of 253,000 jobs originally reported for the previous month. Meanwhile, the Labor Department said the unemployment rate rose to 3.7 percent in May from 3.4 percent in April. The unemployment rate was expected to inch up to 3.5 percent. "It's hard to say which is the bigger surprise, the huge, unexpected rise in payrolls or the equally huge, unexpected rise in the unemployment rate," said Chris Low, Chief Economist at FHN Financial. "From the Fed's perspective, the rise in unemployment coupled with the drop in average hourly earnings should outweigh the shock of another huge job gain," he added. "After all, the weaker numbers stand in support of a pause they were leaning toward anyway." Positive sentiment was also generated in reaction to news the Senate voted to pass the bill raising the U.S. debt ceiling late Thursday night. The Senate voted 63 to 36 in favor of the debt ceiling bill, with 17 Republicans joining with the majority of Democrats to approve the legislation. The passage of the bill eliminates the threat of a potentially disastrous default by the U.S. government, which had been hanging over the markets in recent weeks. Oil service stocks moved sharply higher along with the price of crude oil, driving the Philadelphia Oil Service Index up by 5.5 percent. The rally by oil service stocks came amid a sharp increase by the price of crude oil. Substantial strength was also visible among steel stocks, as reflected by the 5.3 percent spike by the NYSE Arca Steel Index. Banking stocks also showed a significant move to the upside, resulting in a 3.7 percent surge by the KBW Bank Index. Housing, airline and chemical stocks also saw considerable strength on the day, while gold stocks were among the few groups to buck the uptrend. --------------------------------------------------------------- Do you day trade? Trader Alerts streams stocks reaching new highs and lows as well as stocks breaking out of previous volume highs as they happen. It's a powerful tool for day trading ideas. [Learn More / Upgrade]( --------------------------------------------------------------- U.S. Economic Reports CADUSD [CADUSD]( Oil [Oil]( Gold [Gold]( EURUSD [EURUSD]( The Institute for Supply Management is scheduled to release its report on service sector activity in the month of May at 10 am ET. The ISM?s services PMI is expected to edge down to 51.5 in May from 51.9 in April, although a reading above 50 would still indicate growth. Also at 10 am ET, the Commerce Department is due to release its report on new orders for manufactured goods in the month of April. Factory orders are expected to rise by 0.5 percent in April after climbing by 0.9 percent in March. --------------------------------------------------------------- [3 Tiny Stocks Primed to Explode]( The world's greatest investor ? Warren Buffett ? has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential. We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns. [Click here for full details and to join for free.]( --------------------------------------------------------------- Stocks in Focus Shares of Palo Alto Networks (PANW) are moving sharply higher in pre-market trading on news the cybersecurity company will replace Dish Network (DISH) in the S&P 500, effective June 20. Regional bank Valley National Bancorp (VLY) is also likely to see initial strength after JPMorgan upgraded its rating on the company?s stock to Overweight from Neutral. On the other hand, shares of Estee Lauder (EL) may move to the downside after Oppenheimer downgraded its rating on the luxury cosmetics maker to Perform from Outperform and removed its $250 price target. --------------------------------------------------------------- [Sell every Stock except ONE]( Markets are down... But Jeff Clark couldn't care less because he ignores almost every stock in the market except ONE. He lives financially free trading this One Stock Once per month... [Ticker Revealed.]( --------------------------------------------------------------- Europe European stocks are turning in a lackluster performance on Monday as investors digest a raft of mixed economic data. Data showed earlier in the day that the German trade surplus widened to ?18.4 billion from ?14.9 billion as exports unexpectedly rose 1.2 percent and imports fell 1.7 percent in April. Eurozone business growth slowed in May. HCOB's final Composite Purchasing Managers' Index (PMI), compiled by S&P Global, dropped to a three-month low 52.8 in May from April's 54.1. Eurozone PPI came in at -3.2 percent month-on-month in April versus -2.7 percent expected. The Eurozone Sentix Investor Confidence index came in a -17.1 in June, dropping from -13.1 booked in May and -9.2 expected. There was little change to the initial estimates of U.K. service sector activity in May. While the French CAC 40 Index is down by 0.1 percent, the German DAX Index is up by 0.2 percent and the U.K.?s FTSE 100 Index is up by 0.5 percent. Swiss investment bank UBS has risen after saying it would complete its takeover of Credit Suisse by "as early as June 12". SBB shares have also jumped. The company's CEO said the Swedish property group won't sell off its assets at a discount. Commodity stocks have also moved higher after a private survey showed stronger-than-expected growth in China's services sector in May on improved demand. Sirius Real Estate has also rallied. The company lifted dividend despite reporting a slump in annual profit. Hunting has also surged after it entered into a 10-year Strategic Partnership with Zhejiang Jiuli Hi-Tech Metals Co. Meanwhile, Polymetal has tumbled after saying it was considering divestment of its Russian business. Further, the chief executive officer and chief financial officer have resigned from their positions at the Russian subsidiary. --------------------------------------------------------------- Do you have a full view of the market? Level 2 lets you see all of the orders to buy and sell shares, allowing you to see what is really going on in the market. If you don?t have this in your trading toolkit, you?re at a serious disadvantage. [Learn More / Upgrade]( --------------------------------------------------------------- Asia USDCAD [USDCAD]( USDEUR [USDEUR]( USDGBP [USDGBP]( USDJPY [USDJPY]( Asian stocks advanced on Monday as Friday's resilient U.S. jobs data and the Senate passing the debt ceiling bill helped ease fears of a recession. Encouraging service sector readings from China and Japan also boosted sentiment. While U.S. job growth was almost as twice as strong as expected in May, smaller wage gains fueled hopes inflationary pressures are weakening and the Fed will pause interest-rate hikes. Signs of a strong U.S. economy gave an expected boost to the dollar and weighed on gold prices. Oil prices jumped nearly 2 percent in Asian trading after a new output deal among OPEC+ member states was reached over the weekend. Chinese shares ended on a flat note even as a private survey showed China's services activity picked up in May. The Shanghai Composite Index finished marginally higher at 3,232.44, giving up earlier gains. Hong Kong's Hang Seng Index climbed 0.8 percent to 19,108.50. Japanese shares led regional gains to hit a 33-year high, tracking strong gains on Wall Street on Friday and amid optimism that the Bank of Japan will maintain ultra-low rates at the end of a two-day policy meeting later this month. There was more cheer on the data front, as a private survey showed Japan's service sector activity expanded at a record pace in May. The Nikkei 225 Index jumped 2.2 percent to 32,217.43, marking its highest close since July 1990 and posting its biggest daily gain since January 18. The broader Topix Index ended 1.7 percent higher at 2,219.79. Uniqlo brand owner Fast Retailing rallied 3.9 percent and robot maker Fanuc soared 4.5 percent, while tech stocks such as Advantest and Screen Holdings climbed 2-3 percent. Seoul stocks ended higher on Fed pause hopes. The Kospi gained 0.5 percent to close at 2,615.41, led by auto, airline and energy stocks. Australian markets rallied as strong oil and iron ore prices lifted energy and mining stocks. Gold miners succumbed to heavy selling pressures as bullion prices fell on a stronger dollar. The benchmark S&P/ASX 200 Index finished 1.0 percent higher at 7,216.30, while the broader All Ordinaries Index ended 1.0 percent higher at 7,401.20. Elders rose 2.7 percent after an announcement that its chief executive, Mark Allison, would continue in his role. --------------------------------------------------------------- Do you day trade? Trader Alerts streams stocks reaching new highs and lows as well as stocks breaking out of previous volume highs as they happen. It's a powerful tool for day trading ideas. [Learn More / Upgrade]( --------------------------------------------------------------- Commodities Crude oil futures are surging $1.82 to $73.56 a barrel after jumping $1.64 to $71.74 a barrel last Friday. Meanwhile, after tumbling $25.90 to $1,969.60 an ounce in the previous session, gold futures are falling $13.40 to $1,956.20 an ounce. On the currency front, the U.S. dollar is trading at 140.21 yen versus the 139.92 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.0677 compared to last Friday?s $1.0708. --------------------------------------------------------------- To unsubscribe from this news bulletin or edit your mailing list settings click [here](. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +1 888-992-3836. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49