There is no indication that investors sold in May and went away. In fact, it’s quite the opposite. The S&P 500, tech-heavy Nasdaq and Dow Jones Industrial Average all climbed to new highs on Friday, placing the bulls clearly in control.
The S&P 500 secured its seventh consecutive all-time high in its longest such stretch in more than two decades. Stocks were buoyed by a better-than-expected jobs report as the economy continues to flex its rebound muscles, adding 850,000 new jobs in June.
Equity index futures were lacking any clear direction on Monday afternoon, suggesting that Tuesday’s market activity could go either way. Dow futures were slightly higher, with the S&P 500 and Nasdaq both modestly in the red.
Stocks to Watch
FAANG stocks all closed higher on Friday, led by Amazon, which was up more than 2%, and Google parent Alphabet, which added close to 2%.
As Amazon founder Jeff Bezos prepares for his upcoming space mission later this month, he is giving up one of his titles. Bezos has relinquished his role as chief executive while his successor, Andy Jassy, is now officially at the helm of the e-commerce giant. Bezos is not out together, and his new title is executive chair. So far the market is celebrating the executive shuffle.
Virgin Galactic is back in favor with investors, climbing 4% higher after founder Richard Branson announced his plans to one-up Bezos and join a fully crewed spaceflight on July 11. The stock experienced about a 50% gain last month, and analysts have been turning more cautious on shares as a result.
With the stock market closed for a U.S. holiday on Monday, one commodity was moving decidedly higher: crude oil. The price rose above USD 76 per barrel on OPEC-related uncertainty.
Negotiations among OPEC+ members Saudia Arabia and the UAE failed to advance on the topic of oil production in the near term. OPEC+ is poised to bolster production in the coming months, but the UAE is not on board.
On Tuesday, the services sector will be in focus as ISM Services data is released for June. May’s results were solid and the index came in at a reading of 64. For June, Wells Fargo is predicting a slight decline to 63 due to supply constraints.
Investors are also looking ahead to Wednesday when the Fed’s FOMC minutes from its June meeting will be released. The Fed could tip its hand with more details on how it plans to go about tightening monetary policy.
This article was originally posted on FX Empire
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