Rover's Weekly Market Brief - 6/5/2020

Indices

DJIA: 27,111.00 (+6.81%)

NASDAQ: 9,814.00 (+3.42%)

S&P 500: 3,193.93 (+4.91%)

Commodities

Gold: 1,686.60 (-2.90%)

Copper: 253.85 (+4.66%)

Crude Oil: 39.33 (+10.82%)

Customizing Visuals

We have added a powerful new capability to Stock Rover called Visuals, which is available to all users. Our first blog post described what Visuals is and what it can do for you. This week we have published our second blog post which covers how to customize Visuals so that Visuals presents the data you want to see, organized exactly the way you want to see it.

Economy

The Purchasing Managers’ Index (PMI) from the Institute for Supply Management’s (ISM) Manufacturing Report increased to 43.1% in May, up from April’s 41.5%, which was the lowest reading since 39.9% in April 2009. All manufacturing industry sectors other than Food, Beverage & Tobacco contracted for the month, but the overall rate of manufacturing contraction was slowing. The ISM’s Non-Manufacturing Index similarly rose in May to 45.4% from 41.8% in April, with growth for the Agriculture, Finance, Public Administration and Information industries. As with manufacturing, non-manufacturing continued to contract, but at a slower rate. Respondents in both reports noted demand was beginning to increase and business was beginning to pick up, with manufacturing respondents reporting more optimism than non-manufacturing respondents.

U.S. imports fell by $31.8 billion in April to $200.7 billion, but exports fell by an even larger $38.9 billion to $151.3 billion, raising the trade deficit to $49.4 billion (+16.7%). Goods exports fell significantly for capital goods (-10.1 billion), led by civilian aircraft exports, industrial supplies (-$9.1 billion), which include crude oil, and automotive vehicles (-7.4 billion). Goods imports fell for automotive vehicles (-14.5 billion), capital goods (-5.8 billion), led by semiconductors, and consumer goods (-$3.1 billion), led by pharmaceuticals. Service exports decreased -$6.7 billion to $55.8 billion, and service imports fell by -$5.4 billion to $33.3 billion, narrowing the surplus in services to $22.5 billion. Per country, the largest trade deficits were with China ($26.0 billion), followed by the European Union ($14.3 billion), and Germany ($4.1 billion), and the largest surpluses were with South and Central America ($2.9 billion), OPEC ($1.4 billion), and Brazil ($0.8 billion).

Employment rose by +2.5 million in May, dropping the unemployment rate -1.4% to 13.3%, although, as with April’s report, an explanatory note cited inconsistencies in data collection that may have underestimated the unemployment rate by 3%. Workers who had permanently lost their jobs increased by 295,000, but temporarily laid off workers decreased by -2.7 million as coronavirus restrictions were lifted. Employment increased significantly for leisure and hospitality (+1.2 million), construction (+464,000), education and health services (+424,000), retail trade (+368,000), and manufacturing (+225,000). Jobs were lost for government workers (-585,000), information (-38,000), mining (-20,000), and transportation (-19.000). The U6 unemployment rate, which includes discouraged and underemployed workers, fell -1.5% to 21.2%.

Upcoming Economic Reports:

Wednesday June 10 – Consumer Price Index

Wednesday June 10 – FOMC Statement

Earnings Calendar:

 

Monday Tuesday Wednesday Thursday Friday
Coupa
Software
(COUP)
Brown-Forman
(BF.B)
United
Natural Foods
(UNFI)
Adobe
(ADBE)
Nathan’s
Famous
(NATH)
Casey’s
General Store
(CASY)
Chewy
(CHWY)
Oxford
Industries
(OXM)
Lululemon
Athletica
(LULU)
Hooker
Furniture
(HOFT)



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