Jakarta, CNBC Indonesia – The United States (US) stock market opened lower on Thursday (06/03/2021), ignoring positive employment data because it triggered fears that monetary tightening would soon take place.
ADP data reported that there were 978,000 new jobs in May, or far better than economists’ expectations in a Dow Jones poll that forecast 680,000. This is much better than April’s absorption which was only 654,000.
On the other hand, unemployment insurance claims last week recorded an increase of only 385,000, or better than economists projected in a Dow Jones poll that predicted 393,000.
The Dow Jones Industrial Average fell 213.8 points (-0.6%) at 08:30 local time (20:30 WIB) and within 40 minutes to minus 119.8 points (-0.35%) to 34,480, 58. The S&P 500 fell 23.3 points (-0.55%) to 4,184.85 and the Nasdaq dropped 131.2 points (-0.95%) to 13,625.12.
Concerns about inflation and how the US central bank (Federal Reserve/The Fed) reacted to it still weighed on sentiment. Cyclical stocks that benefited from the economic recovery were hit by a sell-off in the pre-opening session, including United Airlines and American Airlines.
The S & P 500 index is now getting closer to its highest level, with a difference of less than 1.5%, and has not been able to move from that position in the last 2 weeks. During the year, the S&P 500 index gained 12% for the year.
Stocks that will benefit from the economic opening tend to be depressed, such as Marriott, Carnival, Gap and GE. On the other hand, Ford’s shares rose 3% after the company stated that its financial performance in the second quarter would be better than its internal target.
Meanwhile, AMC shares fell 30% after exploring the sale of 11.55 million class A shares.short-sell) against AMC shares lost US$ 2.8 billion, according to S3 Partners, after the company’s shares rose yesterday.
According to the initial agreement, the perpetrator short sell-who borrows funds to buy shares at a high price and hopes to pay when the price decreases because they pay their debts at a low price
Yesterday, other stocks entered the ranks of stocks that were guarded by netizens cum traders from perpetrators short-selling, like Blackberry, whose shares jumped nearly 32%, following GameStop shares that have jumped to 33.2%.
The Dow Jones index rose just 25.1 points yesterday, while the S&P 500 and Nasdaq indexes rose slightly in the range of 0.1%. “It’s not clear whether the S&P 500’s flat move is a continuation of last week’s holiday mood, the May-June sluggish phenomenon, or just part of a return to spring normalcy,” said Goldman Sachs analyst Chris Hussey. CNBC International.
CNBC INDONESIA RESEARCH TEAM
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