Manufacturing and Travel and Leisure Drive Crude Oil and Energy Stocks

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  • Summary Analysis:
    • A strong manufacturing report indicative of an expanding economy, plus the Memorial Day weekend’s sharp uptick in travel and leisure activites, aligned nicely with the post-pandemic reopening investment theme. Both of these fundamentally improved the demand outlook for energy usage for WTI Crude and Energy Sector stocks. Technology, was unable to garner favor and shifted to neutral after last Friday’s bullish reversal.
    • The 10-year treasury rate increased 34 bps or (+2.15%) to 1.61%, which led to further weakness in the US Dollar (UUP) and supported the Euro (FXE) and Yen (FXE).
    • Trading in Cryptocurrencies was mixed as Bitcoin (GBTC) declined and is beginning to decouple from other crypto markets, e.g. Ethereum (ETHE) and Litecoin (LITE), both of which advanced.
    • In Commodities, Gold (GLD) consolidated while WTI Crude climbed to a 2 1/2 year new-high, which helped the US Oil Fund (USO) to achieve a new 52-week high itself.
    • Real Estate (IYR) cleared resistance @ $100.75 to make a new record high @ 101.85. Homebuilders (ITB) are consolidating last week’s bullish reversal.
  • ETF Equity Markets:
    • US Markets: The Russell 2000 (IWM) made a new 4-week high and outperformed its larger cap peers which closed relatively unchanged.
    • International: Emerging Markets (EEM), Latin America 40 (ILF) and Brazil (EWZ) each made impressive breakouts after many weeks of consolidation. China (FXI) also led with a sharp bullish reversal to end its short-term downtrend.
    • ETF Sector Strength: Energy (XLE); Real Estate (XLRE); and Basic Materials (XLB).
    • ETF Sector Weakness: Healthcare (XLV); Utilities (XLU); and Technology (XLK).
    • Leading Industries: Mining/Gold; Mining/Silver; Medical/Biomedical.
    • Lagging Industries: Retail/Home Furniture; Paper & Paper Related Products; Retail/Apparel & Shoes; Banks/Major Regional; and Textile/Apparel.
  • Large-Cap Volume Surgers:
    • Abbott Labs (ABT): -9.31% on 363% volume surge.
    • Devon Energy Corp (DVN): +13.70% on 239% volume surge
    • C3.Ai Inc. Cl A (AI): +16.29% on 143% volume surge
    • Dell Technologies (DELL): +4.27% on 67% volume surge
    • Graphic Packaging Hldg Co (GPK): +3.22% on 75% volume surge
  • Small-Cap Volume Surgers:
    • AMC Entertainment Hldgs (AMC): +22.66% on 362% volume surge
    • Range Resources Corp (RRC): +8.85% on 96% volume surge
    • Ovintiv Inc (OVV): +9.31% on 97% volume surge
  • Market Moving Events:
    • Economy / Manufacturing: ISM Manufcturing PMI (May-2021) @ 61.2 vs estimates @ 60.9 and prior @ 60.7; ISM Manufacturing Employment @ 50.9 vs estimates @ 61.5 and prior @ 55.1.
    • Central Banks / US: St. Louis Fed President Bullard’s stated the U.S. jobs market is “tighter than it looks” as the central bank prepares to discuss tapering asset purchases, currently at a $120 billion monthly rate. 
    • Earnings / Positive Surprises
      • Pre-Market: n/a
      • After-Market: HPE; and ZM.
    • Earnings / Negative Surprises
      • Pre-Market: n/a
      • After-Market: n/a

ETF Daily Market Performance Summary: 1-June-2021

etf daily market summary for stocks, bonds, currencies, cryptocurrencies, commodities, real estate, and equity sectors
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Market Diary: 1-June-2021

market diary summary for NYSE and Nasdaq exchanges: advancers, decliners, new highs and new lows, plus mega-cap market breadth
(Click table to enlarge)

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