Stocks End Mixed, Techs Outperform As Amazon Leads
4:10 pm Tuesday, June 08th, 2021
U.S. stocks were little changed on Tuesday after data showed an increase in job openings but didn’t spur significant concern about inflation.
Growth stocks were the early leaders, with the Nasdaq up as much as 0.35%, but some of the new leadership in this comeback effort has been claimed by the cyclically-oriented S&P 500 energy (+0.8%), consumer discretionary (+0.9%), materials (+0.4%), and industrials (+0.3%) sectors.
Apple (AAPL) and Amazon.com (AMZN) were also pulling their weight. Conversely, the utilities (-1.1%), consumer staples (-0.7%), and health care (-0.6%) sectors are underperforming in negative territory.
The meme stocks, meanwhile, have cooled off a bit. For example, AMC Entertainment (AMC) has coughed up a 10% gain, and GameStop (GME) has significantly pared a 23% gain. Wendy’s (WEN), however, has seen increased mentions on the WallStreetBets subreddit and is currently up 20%.
Looking outside the stock market, the Treasury market is sticking to the view that inflation pressures will be transitory. The 10-yr yield is currently down three basis points to 1.54% after touching 1.51% following the Trade Balance report for April.
The trade balance report showed the U.S. trade deficit narrows to $68.9 billion (Briefing.com consensus -$68.6 billion) from $75.0 billion amid supply shortages. Separately, the JOLTS report showed a record 9.286 million job openings in April.
The trade deficit in April narrowed to $68.9 billion (Briefing.com consensus -$68.6 billion) from a downwardly revised $75.0 billion (from -$74.4 billion) in March. April exports were $2.3 billion more than March exports while April imports were $3.8 billion less than March imports.
U.S. Treasuries ended Tuesday on a higher note with longer tenors pacing the advance. Treasuries reached their best levels of the session during the first 30 minutes of action while the rest of the day saw a sideways drift inside a trading range that was established at the start. Treasuries rallied out of the gate after a quiet overnight session, pressuring the 10-yr yield toward its intraday low from May 7 (1.471%).
