07 Jun 2024 Market Close & Major Financial Headlines: S&P 500 And The Dow Opened Sharply Down, Then Trended Higher Seeing The S&P 500 Setting A New High, And Then The Jobs Report Sends Indexes Spiraling Downward Closing Fractionally Lower
Summary Of the Markets Today:
- The Dow closed down 87 points or 0.22%,
- Nasdaq closed down 0.23%,
- S&P 500 closed down 0.11%, (Closed at 5,347, New Historic high 5,375)
- Gold $2,310 down $81.40,
- WTI crude oil settled at $75 down $0.24,
- 10-year U.S. Treasury 4.432 up 0.151 points,
- USD index $104.94 up $0.84,
- Bitcoin $69,204 down $1,570 or 2.22%,
- Baker Hughes Rig Count: U.S. -6 to 594 Canada +15 to 143
*Stock data, cryptocurrency, and commodity prices at the market closing.
Click here to read our current Economic Forecast – June 2024 Economic Forecast: Our Index Marginally Weakened And There Is Another Indicator Warning Of A Recession
Today’s Economic Releases Compiled by Steven Hansen, Publisher:
Total nonfarm payroll employment increased by 272,000 in May 2024, and the unemployment rate changed little at 4.0%. Employment continued to trend up in several industries, led by health care; government; leisure and hospitality; and professional, scientific, and technical services. Talk about crazy, the headline establishment survey showing employment gain of 272,000 (blue bars on the graph below) – the household survey shows an employment DECREASE of 408,000 (red bars on the graph below). Either one or both of the surveys must be wrong as they do not agree. And the household survey (which is the basis of the headline unemployment rate) shows the total workforce fell by 250,000 whilst the number of unemployed increased by 157,000. Also worth noting that the temporary help services fell for the third month in a row which is indicative of a slowing economy.
April 2024 sales of merchant wholesalers were up 1.4% from the revised April 2023 level. Total inventories of merchant wholesalers were down 1.7% from the revised April 2023 level
The April inventories/sales ratio for merchant wholesalers was 1.35. The April 2023 ratio was 1.39. A rising inventory/sales ratio is indicative of a slowing economy – but the amount of rise is currently insignificant – and my takeaway from this and employment levels in this industry is that the economy remains little changed.
U.S. homeowners with a mortgage pulled in $28,000 in equity gains year over year in first quarter of 2024, the highest number since late 2022. California ($64,000), Massachusetts ($61,000) and New Jersey ($59,000) led the country for annual home equity gains in the first quarter. Dr. Selma Hepp, chief economist for CoreLogic added:
Holy crap Batman – the Federal Reserve says consumer credit increased at a seasonally adjusted annual rate of 1.5 percent in April 2024. Revolving credit decreased at an annual rate of 0.4 percent, while nonrevolving credit increased at an annual rate of 2.2 percent. My preferred method of calculating consumer credit growth is 2.0% growth year-over-year. And a 2.0% growth taking inflation into account is a decline of 0.2% year-over-year. This is a major warning sign that the consumer is reducing its use of credit – and that translates into fewer purchases. Fewer purchases = a slowing economy. The slowing is most noticeable in non-revolving credit (cars, student loans, and personal loans) but revolving credit (credit cards) is also slowing.
Here are some of headlines we are reading today:
- China’s EV Boom Sparks Trade Tensions with US and EU
- Biden Administration Seizes Opportunity to Refill SPR Amid Price Dip
- U.S. Oil, Gas Activity Declines
- Gold Surpasses Euro, Challenges Dollar Dominance in Global Reserves
- Iran Doubles Down on Nuclear Ambitions Following IAEA Censure
- Hopes of Fed Cut Jolts Oil Prices
- Tensions Between the West and Russia are Rising Again
- Market backs off on hopes for interest rate cuts following strong jobs report
- S&P 500 closes flat near record, posts winning week: Live updates
- GameStop tumbles 40% as ‘Roaring Kitty’ trader says little new about retailer on livestream
- The Fed’s rate decision and May inflation data will be key tests for the stock market next week
- Bitcoin in the red to end the week after better-than-expected May jobs report: CNBC Crypto World
- 10-year Treasury yield shoots higher after May payrolls top expectations
- US jobs surge casts doubt over interest rate cuts
- Treasury yields end at highest in a week after May’s job gains reduce rate-cut expectations
Click on the “Read More” below to access these, other headlines, and the associated news summaries moving the markets today.