What happened in the markets: 24 Jun - 28 Jun, 2024
Aries Yuangga, Wakil Penasihat Berjangka
The week of June 24-28, 2024, saw notable market movements driven by key economic data and geopolitical developments. The S&P 500 closed at 5,460.48, down 0.1% for the week but up 14.5% year-to-date, while the Dow Jones ended at 39,118.86, also down 0.1% but with a 3.8% year-to-date gain. The NASDAQ rose 0.2% to 17,732.60, reflecting an 18.1% year-to-date increase. The MSCI EAFE gained 0.3% for the week, up 3.5% year-to-date. The 10-year Treasury yield climbed to 4.38%, up 0.1% for the week and 0.5% year-to-date. Oil prices increased to $81.52 per barrel, up 1.0% for the week and 13.8% year-to-date, while the iShares Core U.S. Aggregate Bond ETF fell to $97.07, down 0.7% for the week and 0.2% year-to-date. Key events included the Personal Consumption Expenditures (PCE) price index, which was flat in May with a 0.1% rise in core PCE, signaling cooling inflation. The University of Michigan Consumer Sentiment Index improved to 68.2, indicating consumer confidence. Additionally, the first presidential debate of the 2024 election cycle introduced market volatility due to concerns over potential policy changes.
Top movers & shakers🎢
Several individual stocks made headlines with significant price movements driven by a variety of factors, including quarterly earnings reports, analyst ratings, and strategic announcements. Among the notable movers were:
NVIDIA (NVDA): 💻 Despite experiencing a slight decline on the last day of the quarter, NVIDIA's shares remained up around 150% for the first half of the year. The stock's performance was driven by strong demand for AI-related technology, positioning NVIDIA as a leader in the ongoing AI boom.
Microsoft (MSFT): 💾 Continued to benefit from the AI boom, posting solid gains as investors remained optimistic about its growth prospects in the sector. Microsoft's strategic investments in AI technology and cloud computing have bolstered its market position.
Goldman Sachs (GS): 💰 Rose over 1% after passing the Fed's stress test, which allowed it to proceed with potential buybacks and dividend hikes. This success underscored Goldman Sachs' strong financial health and its ability to return value to shareholders.
Nike (NKE): 👟 Shares fell more than 20% following a quarterly revenue miss and lowered guidance. The company's performance reflected challenges in both the Chinese and North American markets, prompting concerns about its near-term growth prospects.
Super Micro Computer (SMCI): 🖥️ Experienced volatility, falling over 5% after a sharp gain earlier in the week. The stock's movement was driven by speculation about its inclusion in the Nasdaq-100, which led to heightened investor activity.
Tesla (TSLA): 🚗 Continued to face pressure despite broader gains in mega-cap tech stocks. Investor concerns about Tesla's valuation and competitive landscape contributed to its declining performance, reflecting uncertainties about its long-term growth.
These movements illustrate the diverse factors influencing stock prices, from company-specific news to broader market trends. Investors should continue to monitor these and other key players as they navigate the evolving financial landscape.
The Week Ahead: July 01 - 05, 2024
The coming week is packed with important economic data releases that will be closely watched by investors and policymakers alike:
ISM Manufacturing PMI (July 3): This index will offer insights into the manufacturing sector's performance, with analysts expecting a moderate expansion.
Nonfarm Payrolls Report (July 5): One of the most closely watched indicators, this report will provide data on job creation and unemployment rates for June. Early expectations are for 180,000 new jobs and an unemployment rate of 4%.
Jobless Claims (July 5): Weekly jobless claims will be scrutinized for signs of labor market strength or weakness.
Factory Orders (July 5): This report will shed light on the demand for manufactured goods, which is a key indicator of economic health.
Key Earnings Reports
Several major companies are set to report their quarterly earnings in the coming week, providing further insights into corporate health and sector performance:
PepsiCo (PEP): 🥤 Investors will look for insights into consumer spending trends and the company's international performance when PepsiCo reports its earnings. As a global leader in the beverage and snack industry, its results will shed light on consumer demand and economic conditions across different markets.
Levi Strauss & Co. (LEVI): 👖 This report will provide a glimpse into the health of the retail sector and consumer behavior. Levi Strauss's performance will be indicative of broader trends in consumer spending, particularly in the apparel industry.
Constellation Brands (STZ): 🍷 As a major player in the beverage industry, Constellation Brands' results will be indicative of consumer discretionary spending trends. Investors will focus on the company's sales and profitability to gauge the overall health of the sector.
Conclusion
The final week of June 2024 was marked by significant market movements driven by key economic data, geopolitical developments, and notable stock performances. As we move into the second half of the year, attention shifts to upcoming economic data releases and earnings reports. Key indicators like the ISM Manufacturing PMI, Nonfarm Payrolls, and major earnings from companies like PepsiCo, Levi Strauss, and Constellation Brands will provide crucial insights into the economy's health and corporate performance. Investors should stay vigilant and consider diversification strategies to navigate potential market volatility and capitalize on emerging opportunities.
Source:
https://www.schwab.com/learn/story/schwab-market-update
https://www.edwardjones.com/us-en/market-news-insights/stock-market-news/stock-market-weekly-update
*Disclaimer:
This information is provided for general information purposes only. Consider your investment objectives, financial resources and other relevant circumstances carefully before investing. This is not an invitation or an offer to invest, nor is it financial advice or a recommendation to buy or sell any investment.
