Market Perspective for June 3, 2019

Large technology companies slumped after the Federal Trade Commission and Department of Justice launched investigations into Apple (AAPL), Alphabet (GOOGL), Amazon (AMZN) and Facebook (FB). The Nasdaq declined 1.61 percent and the S&P 500 0.28 percent. SPDR Communication Services (XLC), SPDR Technology (XLK) and SPDR Consumer Discretionary (XLY), slid 3.21 percent, 1.77 percent and 0.88 percent, respectively.

Other than the technology sector, stocks enjoyed a modest rally. The Russell 2000 Index gained 0.31 percent and the Dow Jones Industrial Average climbed 0.02 percent. SPDR Materials (XLB) bounced 3.17 percent on Monday thanks to a rally in shares of DuPont (DD). SPDR Energy (XLE) advanced 1.43 percent, SPDR Consumer Staples (XLP) 1.29 percent, SPDR Industrial (XLI) 0.67 percent.

The U.S. manufacturing PMI slipped to 52.1 in May, which is still in expansionary territory. China’s PMI improved, but remains in contraction. Europe’s PMI fell to 47.7. Economists expect the U.S. services PMI, due Wednesday, will have risen to 55.9.

Analysts forecast motor vehicle sales hit an annualized pace of 16.9 million in May, up 500,000 from April.

The Bureau of Labor Statistics releases the May employment report on Friday. Economists predict 185,000 new jobs, an unemployment rate of 3.6 percent and average hourly earnings growth of 0.3 percent. (CRM), Tiffany (TIF), Guidewire (GWRE), Cracker Barrel (CBRL), Five Below (FIVE), Campbell Soup (CPB), American Eagle Outfitters (AEO), Beyond Meat (BYND) and Ciena (CIEN) will all deliver earnings this week.


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