Closing Stock Market Summary
There wasn't a lot of conviction on either side of the tape in the final session of the week. There was an underlying negative bias driving today's movement despite the gains in the major indices through most of the session.
Market breadth favored decliners by a nearly 3-to-1 margin at the NYSE and by an 8-to-3 margin at the Nasdaq.
The downside bias was in response to a sharp jump in market rates. The 10-yr note yield settled 15 basis points higher today, and eight basis points lower this week, to 4.43%. The 2-yr note yield jumped 15 basis points today, which leaves it two basis points lower on the week, to 4.87%.
The price action in Treasuries followed the May Employment Situation Report, which showed higher than expected payroll and earnings growth.
Stocks held up well despite the report and the jump in market rates thanks to ongoing resilience to selling efforts. The equal-weighted S&P 500 closed 0.3% lower and the market-cap weighted S&P 500 fell 0.1%.
Four of the S&P 500 sectors closed higher led by financials (+0.4%) and information technology (+0.2%). The utilities (-1.1%) and materials (-1.0%) sectors logged the largest declines.
In other news, GameStop (GME 29.31, -17.29, -36.0%) shares plunged in response to a disappointing fiscal Q1 earnings report but mainly in response to the company filing to sell up to 75 million shares of Class A common stock. Selling increased after "Roaring Kitty" livestreamed on YouTube today.
- Nasdaq Composite: +14.1% YTD
- S&P 500:+12.1% YTD
- S&P Midcap 400: +5.0% YTD
- Dow Jones Industrial Average: +2.9% YTD
- Russell 2000: UNCH YTD
Reviewing today's economic data:
- May Nonfarm Payrolls 272K (consensus 185K); Prior was revised to 165K from 175K, May Nonfarm Private Payrolls 229K (consensus 168K); Prior was revised to 158K from 167K, May Avg. Hourly Earnings 0.4% (consensus 0.3%); Prior 0.2%, May Unemployment Rate 4.0% (consensus 3.9%); Prior 3.9%, May Average Workweek 34.3 (consensus 34.3); Prior 34.3
- The key takeaway from the report is embedded in the Treasury market's knee-jerk selloff in the wake of the report: the Fed's inflation concerns won't be placated by this release.
- April Wholesale Inventories 0.1% (consensus 0.2%); Prior was revised to -0.5% from -0.4%
Looking ahead, there is no US economic data of note on Monday.