Major indices are mixed as stocks see continuation of yesterday’s trends ahead of a three-day weekend.  Technology (XLK) is one of the worst performing sectors as chipmakers and other AI-infrastructure stocks are lower, giving up their opening gains while Apple (AAPL) and Microsoft (MSFT) are once again cushioning the sector’s weakness. Defensive sectors such as Health Care (XLV), Consumer Staples (XLP) and Utilities (XLU) are higher amid the weakness in the market.

Mega-caps are not providing much support, with Meta Platforms (META) giving up a chunk of yesterday’s gains while Tesla (TSLA) declines despite a strong Q2 deliveries report.

The Semiconductor ETF continues to hold above its 50-day moving average and we suspect there will be some buying on the dip soon.

Semiconductors could be impacted today by the news that Anthropic is reportedly exploring developing its own AI chip and could be in talks with Samsung. This move reflects intensifying competition in the AI chip ecosystem.

Economic Data

The June jobs report saw 57k payroll gains, missing consensus of 114k and negative revisions to April and May employment. The prior month was revised lower to +129k (from +172k). Education and health services added 40k and professional services added 36k, offsetting the -61k decline in leisure hospitality.

Unemployment rate declined a tenth to 4.2% as employed declined -507k and labor force fell by -720k.

Initial and continuing claims saw small moves. Initial claims fell by 1k to 215k from the previous week, below expectations of 220k.

Meanwhile, continuing claims rose by 2k to 1.81M, reaching the highest level in three months.

May factory orders were down -1.3% MoM in May, partially reversing the 5.3% MoM rise in April. The decrease was driven by a 4.5% decline in durable goods orders, led by a 14% decline in transportation equipment.

Durable goods new orders fell -4.5% MoM in May, partially reversing the 8.5% MoM rise in April. Demand rebounded slightly for computers, electronic products, electrical equipment, appliances, and components.

The market will be closed Friday, July 3, for observance of the Independence Day holiday.

Happy 250^th Birthday America!

Tweet

 

Home | Products & Services | Education | In The Media | Help | About Us | Disclaimer | Privacy Policy | Terms of Use | All Rights Reserved.