Last Week's Close
E-mini S&P 500 (June): Settled at 4228.25, up 37.00 on Friday and 25.75 on the week
E-mini Nasdaq-100 (June): Settled at 13,766.75, up 237.50 on Friday and 80.25 on the week
Turnaround Mondays have often become expected after strong Fridays. There was certainly a green light on Friday, but has the Nonfarm Payroll enthusiasm already dissipated? Rates came in after the Goldilocks jobs report and paved the way for Tech to lead the final leg of the week; the Nasdaq gained 1.76% to the Dow’s 0.51%.
On one hand, there’s been a consolidation since late April and early May, providing respective resistance that each index is on the brink of chewing through. Does this Goldilocks report bring the needed firepower to get us there ahead of Thursday’s CPI report?
On the other hand, a pivotal inflation read is lurking around the corner, and an added layer of global tax news over the weekend could’ve damaged Friday’s momentum. Like last week, do portfolio managers and traders use higher prices at the onset to begin preparing for the worst and hoping for the best?
U.S. Treasury Secretary Janet Yellen led G7 nations in backing a global minimum tax rate of at least 15%. On the surface, this hits corporations’ bottom line and Tech can be some of the hardest hit, however, there’s a long road ahead and many moving parts before this needs to be priced into the market. Furthermore, the Biden Administration had initially discussed a minimum rate of 20%, so by some measures, this can be seen as a positive.
This week’s economic calendar starts off slow domestically. Last night, China posted some big Trade numbers for May, but they were still below expectations; Exports 27.9% YoY versus 32.1% expected and Imports 51.1% versus 51.5%.
This morning, German Factory Orders for April MoM contracted and tonight we look to GDP data from Japan. The week unfolds into Thursday’s ECB policy meeting, U.S. CPI, and Jobless Claims data. The U.S. Treasury auctions 3-year, 10-year, and 30-years this week.
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