Next Investors logo grey

US markets shrug off poor jobs data as NASDAQ hits all-time high

Published 05-JUN-2017 10:21 A.M.


3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

Well below consensus new jobs data for the month of May in the US, along with an upcoming week of uncertainty on the geopolitical front wasn’t enough to trouble markets on Friday, as they regained momentum after what had been a fairly flat week, particularly in the US.

With regard to important events unfolding this week that have the potential to impact markets, the UK election is at the forefront, closely followed by the European Central Bank meeting which should provide some commentary regarding the stimulus program that may come under scrutiny given the surge in mainland European equities markets in 2017.

The other factor that could place considerable pressure on President Trump is former FBI director James Comey’s testimony to the Senate Intelligence Committee in relation to Russia’s role in the US presidential election. There is also the potential for commentary regarding pressure that may have been brought upon Comey in terms of investigating Russian involvement.

The Dow finished at 21,206 points representing an increase of 0.3%.

The NASDAQ was the standout performer with a gain of nearly 1%, taking it to a record close of 6305 points. Microsoft Corp. was one of the strongest performers, gaining 2.3%.

UK markets spiked early in the day before trailing off to close at 7547 points, broadly in line with the previous day’s close.

European equities markets appeared to respond more negatively to US jobs data than was the case in US.

While mainland European markets also appeared to trim early gains, there was no stopping the DAX as it surged 1.2% to 12,822 points, outstripping the previous record set in May.

The auto sector was the driving factor with shares in Volkswagen AG and BMW AG delivering gains of more than 1%.

On the commodities front, oil came off 1.3% to close the week at US$47.74 per barrel, a sharp week on week decline from circa US$50 per barrel.

Gold was one of the best performing commodities as it surged nearly 1% from the previous day’s close of US$1270 per ounce to hit a high of US$1282 per ounce, closing within a touch of that mark.

Base metals were mixed with nickel and zinc being the main movers.

After a dismal week, nickel recovered some of its losses to rally circa 1%, closing at US$4.02 per pound.

Zinc was the worst performer, shedding 1.5% to close at US$1.13 per pound, down from circa US$1.18 per pound at the start of the week.

There was little movement in the lead price as it closed the week just below US$0.95 per pound.

Copper fell marginally, closing at US$2.55 per pound.

This article is General Information and contains only some information about some elements of one or more financial products. It may contain; (1) broker projections and price targets that are only estimates and may not be met, (2) historical data in terms of earnings performance and/or share trading patterns that should not be used as the basis for an investment as they may or may not be replicated. Those considering engaging with any financial product mentioned in this article should always seek independent financial advice from a licensed financial advisor before making any financial decisions.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.