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US Stock Markets Ended June 3, 2022
Despite the holiday shorten trading week, the S&P 500 Index returned -1.15% last week, marking the seventh loss in the last eight weeks for the index. Energy was the top performing sector as global energy supply/demand remains out of balance. Oil closed Friday at $118.87 per barrel, the highest price since early March just after Russia invaded Ukraine. Last week OPEC agreed to boost their production output by increasing their growth in quotas from ~430k per month to ~650k per month starting in July. Despite the ~50% hike in OPEC production growth, energy markets continued to rally as inventory draws and recovering demand outpaced supply. Jamie Dimon, CEO of JPMorgan Chase & Co., had some candid comments last week: "Right now, it's kind of sunny, things are doing fine, everyone thinks the Fed can handle this... However, that hurricane is right out there... we just don't know if it's a minor one or a superstorm... you better brace yourself." These comments sent equities falling as he is considered one of America's top CEO's. Dimon is certainly correct that things are sunny right now. Jobs data remained strong as well as corporate earning as 1Q22 earnings season is almost over. Salesforce Inc. announced quarterly results last week as they beat on earnings and revenue, as well as boosting earnings guidance for the year. The company touted their booked performance obligations and continued entrenchment of their software into their customers everyday work lives, which sent their stock up 12% last week. Several retail names rallied as consumers continue to have strong balance sheets and spending patterns. According to Visa Inc., U.S. total credit card swipe volumes are about 148 indexed to pre-pandemic 2019 swipes. The top 10 performing stocks in the S&P 500 index included Under Armor Inc. which returned 7.46%, Ralph Lauren Inc. 6.39%, Amazon.com Inc. 6.25%, and Estee Lauder Companies 4.91%. Looking ahead to next week, we await CPI and Consumer Sentiment reports to see if equities will test new lows, or if the stock market will continue to recover.
Monday, June 6, 2022 @ 8:10 AM
These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.