U.S. and World News
- Chinese stocks made their way into bear market territory this week as trade tensions continue to rise. According to reports, another trade initiative is currently being crafted that would restrict companies with at least 25% Chinese ownership from buying companies involved in industrially significant technology. President Trump tweeted earlier this week that “The U.S. is insisting that all countries that have placed artificial Trade Barriers and Tariffs on goods going into their country, remove those Barriers & Tariffs or be met with more than Reciprocity by the USA.”
- As the U.S. continues to pressure Iran after pulling out of the Iran Nuclear Deal, the United States has asked its allies to stop importing oil from Iran, or face U.S. sanctions. This new development has sent the price of WTI crude oil over $70 per barrel as OPEC’s third largest producer is put under pressure. Saudi Arabia plans to pump more oil in July than ever before at 11 million barrels per day to respond to the supply gap and rising oil prices.
- Stock markets fell again this week. The S&P 500 dropped 1.31% this week and closed at 2,718. The Dow Jones fell 1.26% and closed at 24,271. Year to date, the S&P is up 2.64% and the Dow Jones is down 0.71%.
- Yields also declined this week. The 5 year and 10 year U.S. Treasury Notes are now yielding 2.73% and 2.86%, respectively.
- The spot price of WTI Crude Oil surged 8.36% this week and closed at $74.31 per barrel.. Year to date, Oil prices are up 23.62%.
- The spot price of Gold decreased 1.39% this week, closing at $1,252.94 per ounce. Year to date, Gold prices are down 3.83%.
- Initial jobless claims rose by 9,000 to 227,000 this week. The four-week moving average of claims edged up by 1,000 to 222,000. Jobless claims rose by 3,000 in California and Kentucky, and rose by 2,000 in Maryland.
- The third estimate of first quarter GDP was revised down to 2.0% from 2.2% and the year-over-year rate was unchanged at 2.8%. The downward revision was led by a decline in the consumer spending component, net trade, and inventories.
- Sales of new single-family homes rose by 6.7% month-over-month in May to a seasonally adjusted rate of 689,000 units, exceeding consensus expectations of 667,000. The rise in new single-family home sales were led by sales in the South.
- The Conference Board index of consumer confidence fell to 126.4 from 128.8.
- New orders for durable goods fell by 0.6% in May versus consensus expectations of a 1.0% decline.
- Wholesale inventories rose by 0.5% in May versus expectations of a 0.2% increase.
- Pending home sales fell 0.5% in May versus expectations of a 0.5% increase.
- Personal income rose 0.4% in May, in line with expectations.
- Personal spending rose 0.2% in May, versus expectations of a 0.4% increase.
Fact of the Week
- An analysis by the ECB and Dutch central bank found that trading volume during the FIFA World Cup drops roughly 33% during the games from normal levels. Median trading volume was found to be 55% lower on a given exchange when the exchange’s home county was playing. (Source: Seeking Alpha)
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