Dow Jones futures, along with S&P 500 futures and Nasdaq futures, edged lower overnight as the stock market rally retreated. The retreat came as strong economic data sent Treasury yields soaring. The ADP Employment Report estimated that private payrolls skyrocketed by 497,000 in June, more than double the forecasts. The ISM services sector index also rose more than expected. Initial jobless claims rose modestly, but the four-week average fell while continuing claims slipped. Additionally, announced layoff plans declined significantly last month.
Meta Platforms (META), the parent company of Instagram, held up well as its Threads app gained significant traction. The app garnered 30 million sign-ups in less than a day, potentially reaching 48 million in 24 hours. This makes it the fastest number of downloads ever. However, Twitter threatened legal action against its new rival. Tesla (TSLA) CEO Elon Musk, who owns Twitter, commented that “cheating” is not acceptable.
Microsoft (MSFT) saw a rally in its stock following a price target hike. Visa (V), Mastercard (MA), and DexCom (DXCM) were also noted as stocks holding up well and remaining in buy zones. Nvidia (NVDA) continued to trade tightly, while HubSpot (HUBS) initially skidded but later rallied off key support.
In other news, the FDA approved Biogen’s Alzheimer’s treatment Leqembi late Thursday. This approval boosts the chances of Biogen and partner Eisai getting Medicare reimbursement for the drug. Biogen stock was halted after hours, with shares edging down 0.3% during Thursday’s regular session. Eli Lilly (LLY), which has a similar Alzheimer’s treatment in trial, saw its stock edge higher overnight.
The article also discussed the upcoming June jobs report, which is expected to show an increase of 213,000 jobs, a decrease from May’s 339,000. The unemployment rate is expected to slip to 3.6%, and average hourly wage growth is predicted to cool to 4.2% from May’s 4.3%. The ADP’s track record of predicting Labor’s nonfarm payrolls is not strong, but the odds of a July 26 Fed rate hike are now at 93%.
Dow Jones futures lost a fraction vs. fair value, while S&P 500 futures and Nasdaq 100 futures fell 0.1%. The jobs report is expected to impact Treasury yields and Dow futures before the market opens.
The stock market rally experienced a sell-off due to soaring yields following the ADP report. The 10-year Treasury yield advanced to a four-month high of 4.04%, while the 2-year yield climbed to a 16-year high of 5.12% intraday. The Dow Jones Industrial Average retreated 1.1%, the S&P 500 index and Nasdaq composite gave up 0.8%, and the small-cap Russell 2000 slumped 1.6%.
Leading stocks also retreated, with many finding support at key levels. Growth ETFs, such as the Innovator IBD 50 ETF (FFTY) and the iShares Expanded Tech-Software Sector ETF (IGV), declined, while the VanEck Vectors Semiconductor ETF (SMH) fell after a previous loss. Reflecting more speculative story stocks, ARK Innovation ETF (ARKK) and ARK Genomics ETF (ARKG) tumbled.
In terms of individual stocks, Meta stock dipped slightly but held strong after the launch of its Threads app. Microsoft stock edged up, while Visa, Mastercard, Nvidia, DexCom, and HubSpot were noted as stocks to watch. The article also mentioned the performance of various ETFs, including SPDR S&P Metals & Mining ETF (XME), U.S. Global Jets ETF (JETS), SPDR S&P Homebuilders ETF (XHB), Energy Select SPDR ETF (XLE), Health Care Select Sector SPDR Fund (XLV), Industrial Select Sector SPDR Fund (XLI), Financial Select SPDR ETF (XLF), and SPDR S&P Regional Banking ETF (KRE).
Overall, the stock market rally experienced a retreat due to strong economic data and soaring Treasury yields. The upcoming jobs report is expected to have an impact on market trends, and investors are advised to monitor key levels and buying opportunities.Dow Jones futures, along with S&P 500 futures and Nasdaq futures, edged lower overnight, signaling a potential retreat in the stock market rally. The decline comes as strong economic data sent Treasury yields soaring. The ADP Employment Report estimated that private payrolls skyrocketed by 497,000 in June, more than double the forecast. Additionally, the ISM services sector index rose more than expected. While initial jobless claims rose modestly, the four-week average fell and continuing claims slipped. Announced layoff plans also declined significantly last month.
In company news, Meta Platforms (META) saw its stock hold up well as its Threads app gained 30 million sign-ups in less than a day, potentially reaching 48 million in 24 hours. This makes it the fastest number of downloads ever. However, Twitter threatened legal action against its new rival. Tesla (TSLA) CEO Elon Musk, who owns Twitter, commented that “cheating” is not acceptable.
Microsoft (MSFT) experienced a rally following a price target hike. Visa (V), Mastercard (MA), and DexCom (DXCM) are also holding in buy zones, while Nvidia (NVDA) continues to trade tightly. HubSpot (HUBS) initially skidded on Thursday morning but later rallied off key support.
In other news, the FDA approved Biogen’s Alzheimer’s treatment Leqembi late Thursday. Biogen (BIIB) and partner Eisai already have accelerated approval, but full FDA approval increases their chances of getting Medicare reimbursement for Leqembi. Biogen stock was halted after hours, with shares edging down 0.3% during Thursday’s regular session. Eli Lilly (LLY), which has a similar Alzheimer’s treatment in trial, edged higher overnight.
Looking at the broader market, the Dow Jones Industrial Average retreated 1.1% in Thursday’s trading, while the S&P 500 index and Nasdaq composite gave up 0.8%. The small-cap Russell 2000 slumped 1.6%. Market breadth was negative, with losers outnumbering winners by a significant margin.
Investors are now awaiting the release of the June jobs report by the Labor Department, which is expected to show an increase of 213,000 jobs, down from May’s 339,000. The unemployment rate is projected to slip to 3.6%, and average hourly wage growth is expected to cool to 4.2% from May’s 4.3%.
Dow Jones futures lost a fraction vs. fair value, while S&P 500 futures and Nasdaq 100 futures fell 0.1%. The jobs report is likely to impact Treasury yields and Dow futures before the market opens. However, it’s important to note that overnight action in futures doesn’t always translate into actual trading during regular stock market sessions.
As the stock market rally faces some headwinds, investors are advised to consider trimming profits and being quick to cut losses, especially on newer buys. It’s also a time to look for stocks that are holding key levels and showing relative strength. Visa, HubSpot, and Nvidia are among the stocks to watch in this regard.
What impact did the rising Treasury yields and strong economic data have on the stock market rally
Om (DXCM) were also noted as stocks that remained strong and in buy zones. Nvidia (NVDA) continued to trade steadily, while HubSpot (HUBS) initially slumped but later rebounded from key support.
In other news, the FDA approved Biogen’s Alzheimer’s treatment Leqembi, boosting the chances of Medicare reimbursement for the drug. Biogen stock was halted after hours, with a slight decline during Thursday’s regular session. Eli Lilly (LLY), which has a similar Alzheimer’s treatment in trial, saw its stock edge higher overnight.
The article also mentioned the upcoming June jobs report, which is expected to show a decrease in job growth compared to May. The unemployment rate is predicted to slip, and average hourly wage growth is expected to cool. The ADP’s track record in predicting Labor’s nonfarm payrolls is not strong, but the odds of a Fed rate hike in July are now at 93%.
Dow Jones futures, S&P 500 futures, and Nasdaq 100 futures all declined overnight, and the jobs report is expected to impact Treasury yields and Dow futures before the market opens.
The stock market rally experienced a sell-off due to rising yields following the ADP report. The Dow Jones Industrial Average, S&P 500 index, and Nasdaq composite all retreated, along with the small-cap Russell 2000.
Leading stocks also pulled back, with some finding support at key levels. Growth ETFs, such as the Innovator IBD 50 ETF and the iShares Expanded Tech-Software Sector ETF, declined, as did the VanEck Vectors Semiconductor ETF. ARK Innovation ETF and ARK Genomics ETF, which represent more speculative stocks, also tumbled.
Individual stocks like Meta, Microsoft, Visa, Mastercard, Nvidia, DexCom, and HubSpot were mentioned as stocks to watch. The article also highlighted the performance of various ETFs, including those focused on metals and mining, airlines, homebuilders, energy, healthcare, industrial, financial, and regional banking sectors.
Overall, the stock market rally experienced a retreat due to strong economic data and soaring Treasury yields. Investors are advised to monitor key levels and buying opportunities as they await the impact of the upcoming jobs report.
