Archives of “May 2021” month

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Dow, S&P closes lower for the second consecutive week. The Nasdaq rose for the week, but was lower today

  
Analysis, US Market

NASDAQ index and S&P closes lower.

The US stock indices are closed for the week. The NASDAQ index was the weakest of the majors today. The Dow industrial average closed higher. The S&P was marginally lower:
  • NASDAQ index posts first weekly gain in five weeks
  • NASDAQ post the fourth negative session in five
  • Dow, S&P closed lower for the second straight week
  • Dow is of for the second consecutive day after three days of the declines to start the week
  • The Russell 2000 of small-cap stocks also rose today
The final numbers are showing:
  • S&P index -3.13 points or -0.08% at 4156.00. The low for the day reached 4151.72.  The high extended to 4188.72
  • NASDAQ index fell -64.75 points or -0.48% at 13470.99. The low for the day reached 13463.27. The high extended to 13616.58.
  • Dow rose 123.69 points or 0.36% at 34207.84. The low for the day reached 34121.91. The high was up a 34415.48
For the week, the the Dow was the biggest loser -0.51%. The NASDAQ gained at 0.31%. Below are the % changes of some of the major indices around the globe.  Canada’s S&P/TSX index was the biggest gain or at 0.91%. The Dow was the biggest decliner for the week.

European indices end the day mostly higher

  
Analysis, Global Indices

UK FTSE 100 lower on the week

The European major indices are ending the day mostly higher.  The snapshot of the provisional closes are showing:

  • German DAX, +0.4%
  • France’s CAC, +0.7%
  • UK FTSE 100 , flat
  • Spain’s Ibex, +0.8%
  • Italy’s FTSE MIB, +1.0%
For the week, the UK FTSE 100 felt modestly. The other major indices were higher:
  • German DAX, +0.14%
  • France’s CAC, +0.1%
  • UK FTSE 100, -0.3%
  • Spain’s Ibex, +0.6%
  • Italy’s FTSE MIB, +0.7%
Looking at the daily chart of the German DAX, the index on Tuesday reached a new all-time intraday high of 15538.01 before rotating back to the downside. The move lower saw the price retest its 50 day moving average (white line in the chart below currently at 15075).
The price on Wednesday did dipped below that moving average level but recovered into the close. On Thursday, the low state above the level. Today the range was much more narrow with a higher bias.
UK FTSE 100 lower on the week
In other markets as London/European traders look to exit.
  • Spot gold is trading near unchanged at $1876.50 (down $0.70 or -0.04%).
  • Spot silver, $-0.33 or -1.2% at $27.42
  • WTI crude oil futures are recovering today and up two dollars or 3.26% at $63.96. The high for the day just reached $64.07
  • Bitcoin is trading down $-2500 or -6.45% at $37,488
In the US stock market, the NASDAQ index has turned negative. The Dow industrial leads the way higher today.
  • S&P +11.88 points or 0.29% at 4171.21
  • NASDAQ index -21.08 points or -0.16% at 13514.30
  • Dow industrial average up 250 points or 0.74% at 34333

UK May flash services PMI 61.8 vs 62.2 expected

  
Analysis, Economy

Latest data released by Markit/CIPS – 21 May 2021

  • Prior 61.0
  • Manufacturing PMI 66.1 vs 60.8 expected
  • Prior 60.9
  • Composite PMI 62.0 vs 61.9 expected
  • Prior 60.7

Despite a bit of a miss on the headline estimate, this is still a strong report with overall business activity expanding at its quickest pace on record – reflecting strong growth in both services and manufacturing activity as the UK reopening gathers pace.

Pent-up demand is the obvious driver here although strong price pressures are still a downside to note in this report, much like everywhere else at the moment.

Eurozone May flash services PMI 55.1 vs 52.5 expected

  
Analysis, Economy

Latest data released by Markit – 21 May 2021

  • Prior 50.5
  • Manufacturing PMI 62.8 vs 62.5 expected
  • Prior 62.9
  • Composite PMI 56.9 vs 55.1 expected
  • Prior 53.8

This is an encouraging report as it reaffirms some pickup in services activity in the euro area as economies start to get back on their feet and move on from virus restrictions. The manufacturing sector is stalling a little but is keeping at robust levels overall.

Of note, new order inflows surged to its highest not seen in almost 15 years as business optimism continues to break new highs as sentiment surrounding 2H 2021 looks extremely positive. Markit notes that:

“Demand for goods and services is surging at the sharpest rate for 15 years across the eurozone as the region continues to reopen from covid-related restrictions. Virus containment measures have been eased in May to the lowest since last October, facilitating an especially marked improvement in service sector business activity, which has been accompanied by yet another near-record expansion of manufacturing.

“Growth would have been even stronger had it not been for record supply chain delays and difficulties restarting businesses quickly enough to meet demand, especially in terms of re-hiring. The shortfall of business output relative to demand is running at the highest in the survey’s 23-year history.

“This imbalance of supply and demand has put further upward pressure on prices. How long these inflationary pressures persist will depend on how quickly supply comes back into line with demand, but for now the imbalance is deteriorating, resulting in the highest-ever price pressures for goods recorded by the survey and rising prices for services.”

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