Stocks hit new highs before pulling back, economic reports positive, supported by window dressing

From Nasdaq: 2024-06-28 14:08:12

Today, the S&P 500 and Nasdaq 100 hit new all-time highs before falling back slightly in the afternoon. US economic reports showed easing price pressures, with the May core PCE deflator at +2.6% y/y. Chip stocks are strong, while the market is supported by quarter-end window dressing. Stock fund managers are buying top performers for their portfolios.

The T-note yield rose to 4.327% as economic reports beat expectations. The US May personal income increased +0.5% m/m, outperforming estimates. The Jun MNI Chicago PMI surged to 47.4, well above forecasts, while the University of Michigan Jun consumer sentiment index was revised upward to 68.2. Comments from Richmond Fed President Barkin were slightly hawkish.

European bond yields rose, with the 10-year German bund yield hitting 2.499%. The Eurozone’s May ECB 1-year inflation expectations eased to 2.8%. In Germany, Jun unemployment rose by +19,000 to 6.0%. Swaps suggest a 67% chance of a -25 bp rate cut by the ECB in September.

Stocks on the move include Synchrony Financial (SYF) and chip stocks like Marvell Technology (MRVL) and AMD. Healthcare stocks like Humana (HUM) are up on positive comments about health insurers. Tesla (TSLA) rose after an increase in Q1 global electric vehicles sales. Estee Lauder (EL) is down on concerns about slower beauty market growth.



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