This piece is approved to use with clients.
Weekly Market Snapshot: June 4, 2021
Market related news for the week ending June 4, 2021
- Tuesday oil prices jumped to a twoyear high as OPEC+ confirmed a gradual production increase at its monthly meeting. Gas prices at the pump hit their highest level in seven years over the Memorial Day weekend, according to data from GasBuddy.
- Wednesday AMC shares rose 95% despite four trading halts, marking a 3600% return since the beginning of the year. AMC used the spike in its stock price to raise more capital by selling 11.5m shares. Around the same time, Jeffries and Raymond James blocked sales of AMC shorts, contributing to an 18% fall in the stock’s price Thursday and a 6.75 drop Friday.
- President Biden announced plans for a 15% tax floor rather than raising the corporate tax rate to 28% to persuade Republicans to support his infrastructure package. For reference, 116 companies in the S&P 500 reported an effective tax rate less than 15% last year. Relatedly, the G-7 announced they were near agreement for at least a 15% global minimum corporate tax rate.
- The Fed announced this week that it will begin selling off its portfolio of corporate debt and ETFs over the next six months, beginning with ETFs and then progressing to bond holdings through the summer. Sales are likely to have a minimal impact on credit markets as the size of the facility is only slightly above $13 billion, however some are interpreting this as a sign mortgage-backed securities and Treasury purchases are likely to be tapered sooner rather than later.
- Friday oil prices capped a 5% rise for the week.
Economic news for the week ending June 4, 2021
- Monday: Memorial Day Holiday.
- Tuesday: Manufacturing PMI for May was 62.1.
- Tuesday: ISM Manufacturing PMI for May came in at 61.2.
- Thursday: ADP Non-Farm Employment for May was 978,000, much higher than expected, with leisure and hospitality showing the largest gains.
- Thursday: Initial Jobless Claims came in at 385,000. Continuing Claims were 3,771,000.
- Thursday: Markit Composite PMI for May was 68.7, up from the prior 63.5.
- Thursday: Services PMI for May came in at 70.4, up from the prior 64.7.
- Thursday: ISM Non-Manufacturing PMI for May was 64.0, up from the prior 62.7.
- Friday: Non-Farm Payrolls for May were up 559,000, less than expected. The unemployment rate fell to 5.8% from the prior 6.1%.
- Friday: Factory Orders for April fell 0.6%, much worse than expected. The prior reading was revised up from 1.1% to 1.4%.
Economic events for the week ending June 11, 2021
(all times listed are Eastern)
- Monday: No major releases.
- Tuesday: JOLT’s Job Openings for April at 10.00am.
- Wednesday: No major releases.
- Thursday: CPI for May at 8.30am.
- Thursday: Initial Jobless Claims at 8.30am.
- Friday: Michigan consumer Sentiment for June at 10.00am.
This report is available as a PDF. To read the full report click the button above to open the report.