All three major benchmarks were set to snap a three-week losing streak
The holiday-shortened week brought rare gains to Wall Street. Stocks returned from the Juneteenth holiday on Tuesday determined to stage a comeback, with the Dow Jones Industrial Average (DJI) rising 641 points to score its best win since May 4. Meanwhile, energy and mega-cap stocks led the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) higher as well. The major indexes fell on Wednesday, though, despite Federal Reserve Chairman Jerome Powell’s testimony before the Senate Banking Committee, which reaffirmed the central bank’s hawkish stance. Plus, U.S. President Joe Biden called on Congress to suspend the federal gas tax for three months, as consumers continue to face high prices at the pump.
A drop in weekly jobless claims and recession fears were at the top of investors’ minds on Thursday. The Dow settled 194 points higher despite trading on both sides of the aisle, with consumer staple stocks leading the way as the energy sector took a hit due to demand concerns. In addition, the Cboe Volatility Index (VIX) logged its first win in four sessions. The blue-chip index’s rally gained steam on Friday, with all three benchmarks set to snap a three-week losing streak at last check, as 12-month consumer inflation expectations dropped to 5.3%.
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It was a big week of corporate news, too. Kellogg (K) popped after announcing it was splitting into three independent companies, while Acadia Pharmaceuticals (ACAD) plummeted after the U.S. Food and Drug Administration (FDA) said its drug to treat psychosis related to Alzheimer’s was ineffective. Elsewhere, tech concern DocuSign (DOCU) revealed Dan Springer has stepped down as CEO, and e-commerce giant eBay (EBAY) tapped into the non-fungible token (NFT) market with its acquisition of KnownOrigin.
In other news, Altria (MO) sank after reports that the FDA was preparing to ban Juul Labs’ e-cigarettes in the U.S., a move that became official on Friday. United Airlines (UAL) was lower as well, after the airline cut 12% of flights out of the Newark Liberty International Airport to reduce delays. Finally, a group of private equity firms bought Zendesk (ZEN) for $10.2 billion deal and will take the company private.
End of June Packed With Economic Data
June comes to an end next week with a slew of economic data. In fact, first-quarter gross domestic product (GDP) revisions, a host of personal consumption expenditures (PCE) inflation updates, and the Chicago’s Purchasing Managers’ Index (PMI) are due out. In addition, Bed Bath & Beyond (BBBY), Constellation Brands (STZ), General Mills (GIS), McCormick (MKC), Micron (MU), Paychex (PAYX), as well as Walgreens Boots Alliance (WBA) will report earnings. Before then, check out the next S&P 500 resistance areas, and see how the Dow prices out in alternative assets.