Last Week's Close

E-mini S&P 500 Futures (June): Settled at 4202.50, up 3.50 on Friday and 50.75 on the week

E-mini Nasdaq-100 Futures (June): Settled at 13,686.50, up 21.00 on Friday and 281.50 on the week

U.S. benchmarks pointed higher ahead of the first opening bell of June. The S&P was less than 0.5% from a new record and the Dow about 0.7%. Over in Europe, the German DAX has already set a fresh record. Tailwinds are certainly coming from new inflows to start the month, stronger-than-expected Manufacturing PMI from both China and the Eurozone, as well as an improving Covid-19 situation in India.

China’s Manufacturing PMI trended lower through March for what was 4 straight months and underpinned fears of a slowing economic rebound, but this was the second straight improvement and the best read since December. 

Recently, Covid-19 ravaged parts of Asia; India was hardest hit, but signs of a light at the end of the tunnel are emerging. The 7-day moving average of Covid-19 cases in India has been cut in half from its peak and is at the lowest level since mid-April. Local governments have begun relaxing some restrictions by letting some businesses operate at a small capacity. 

These narratives have brought a tailwind to the energy space and crude oil has gained as much as 3%. This comes as OPEC+ meets today to discuss July production and, maybe more importantly, the following months.

The week’s economic calendar points to a busy week of data and Fed speak that culminates with a pivotal Nonfarm Payroll report on Friday. Today, the closely-watched ISM Manufacturing for May came due at 9:00 a.m. CT. Final Manufacturing PMI for May was released just before at 8:45 a.m. CT and Fed Governor Randal Quarles spoke at 9:00 a.m. CT.

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