U.S. Indexes gained on Tuesday, helped by broad buying across sectors (RSP +0.5%) and particularly gains in AI-related stocks. Micron (MU +19.4%) drove the bulk of SPX’s gains (contributed ~19 Handles to SPX’s 46-Handle) as the rally in semiconductors and memory names showed no sign of stopping; UBS upped its MU PT to USD 1,625 (prev. 535), citing long-term memory supply agreements. Energy stocks underperformed on the drop in oil futures WTD, a function of the US and Iran nearing a finalisation of an agreement, with reports suggesting Iran’s blocked resources are the main sticking point left unresolved. Energy prices bounced off Monday’s lows as Iran looks to respond to the US attacks, in which the US said it conducted self-defence strikes in southern Iran. Staples were a sea of red, as appetite for the defensive sector remains subdued in the aftermath of cautious Q2 commentary seen in Walmart and Target earnings last week. Yields on global government bonds followed the move lower in energy prices, with money market pricing walking back its short-lived expectation for a 25 basis points Fed rate hike by year’s end on hawkish commentary from the Fed’s Waller seen last Friday. Amid the easing in global yields, the Dollar, alongside mixed signals out of the Middle East, was broadly firmer against peers. NZD was the worst G10 performer ahead of the RBNZ rate decision overnight, which is expected to see the OCR held at 2.25%. Precious metals were more mixed amid the stronger USD; gold was flattish; silver, platinum, and palladium all gained. Outside of geopolitics, updates had a limited impact on intraday movement. CB’s Consumer Confidence saw a drop in May as inflation impacts from the Middle East continue to act as a drag; meanwhile, an average US 2 Year Treasury Note Auction was met with a muted reaction. The Conference Board’s gauge of US consumer confidence eased to 93.1 in May (exp. 92), down from an upwardly revised 93.8 in April. The Expectations Index rose to 74.4 from 71.9, the Present Situation eased to 121.2 from 123; jobs are ‘hard to get’ fell to 18.6% from 19.8%, and the labour market differential fell by 0.6 points to 6.9. Pantheon Macroeconomics said the data was subpar, noting that while expectations recovered to a five-month high, the labour market picture deteriorated, with the share of households finding jobs plentiful falling to its lowest since February 2021, which PM says points to a renewed rise in unemployment ahead. The consultancy anticipates that Y/Y consumption growth is slowing modestly in Q2, and on inflation, says that a weakening labour market will limit the pass-through of elevated expectations into wages and prices. Elsewhere, Oil closed higher by 3% while Gold ended Tuesday’s session with a 1/75% fall.
To mark my 3375th issue of TraderNoble Daily Commentary I am offering a special 2-Year Rate of Euro 2750 for my Platinum Service which includes 1 to 4 updated emails throughout the trading day to demonstrate this value, a monthly subscription over the same period would cost 4440 euro in total This offer represents a 38% discount and is open to both new and existing members. If anyone is interested in this offer can you please email me on bryan@tradernoble.com for details
For anyone following my Platinum Service it lost 305 points yesterday and is now down by 1930 points for May having ended April with a gain of 1730 points, after ending March with a massive gain of 9002 points, having closed February with a strong gain of 5482 points after ending January with a gain of 4757 points, having closed December with a gain of 2599 points, after ending the month of November with a gain of 4542 points, after ending October with a nice gain of 5110 points after closing September with a gain of 3774 points while ending August with a gain of 3362 points after closing July with a gain of 3753 points after closing June with a gain of 3530 points, having closed May with a gain of 3606 points, after closing April with a gain of 7685 points after closing March with a gain of 2254 points while closing February with a gain of 4180 points. January ended with a gain of 2768 points while 1997 points were gained in December. October ended with a gain of 2179 points, after closing September with a gain of 4402 points, following a loss of 301 points in August. July gained 1908 points while June saw a gain of 2074 points. The Platinum Service made a record 9619 points in October 2022. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 2300 points. I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification
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