Month: June 2023

The Markets (as of market close June 23, 2023)

Recession fears sent stocks lower during the holiday-shortened week. Each of the benchmark indexes listed here closed in the red, with the small caps of the Russell 2000 and the Global Dow losing over 2.50%. The downturn ended a three-week rally for the Dow, a five-week winning streak for the S&P 500, and an eight-week surge by the Nasdaq. Concerns about rising interest rates and slowing economic growth weighed on equities. Rising inflation in Europe and Asia prompted more interest rate hikes by many central banks, which also dampened market growth. Ten-year Treasury yields dipped lower, while the dollar eked out a gain. Gold prices declined for the second straight week. Crude oil prices declined on fears of waning demand.

Wall Street ended last Tuesday lower as investors awaited House testimony from Federal Reserve Chair Jerome Powell, hoping to glean any clues as to the prospects of further interest rate hikes. Each of the benchmark indexes listed here closed the session lower, with the Dow falling 0.7%, followed by the Global Dow (-0.6%), the S&P 500 (-0.5%), the Russell 2000 (-0.4%), and the Nasdaq (-0.2%). Crude oil prices slid 1.2% to close at around $70.94 per barrel amid concerns over weakening demand. Ten-year Treasury yields declined 4.0 basis points to settle at 3.72%. The dollar was flat, while gold prices dipped lower.

Last Wednesday saw stocks fall for the second straight session, following Federal Reserve Chair Jerome Powell’s intimation that interest rate increases will continue until inflation recedes to the Fed’s 2.0% target rate. Tech shares slid lower, dragging the Nasdaq down 1.2%. The S&P 500 fell 0.5%, the Dow dipped 0.3%, the Russell 2000 declined 0.2%, and the Global Dow ended where it began. Crude oil prices rebounded, rising nearly 2.0% to reach $72.58 per barrel. Ten-year Treasury yields fell 0.6 basis points to close at 3.72%. The dollar dropped nearly 0.5%, while gold prices fell 0.2%.

Stocks ended last Thursday with mixed results. The Nasdaq (1.0%) and the S&P 500 (0.4%) posted gains, buoyed by rallies in consumer discretionary, information technology, and communications. The small caps of the Russell 2000 (-0.9%) and the Global Dow (-0.4%) slid lower. The Dow was flat. Several central banks, including the Bank of England, raised interest rates, following a spike in inflation data. Ten-year Treasury yields closed at 3.79%, up 7.6 basis points from the previous day. Crude oil prices plunged 4.3%, to $69.38 per barrel, impacted by the aforementioned interest rate hikes. The dollar rose 0.3%, while gold prices fell 1.1%.

Last Friday saw stocks close lower, with each of the benchmark indexes listed here losing value. The Russell 2000 fell the furthest, dropping 1.4%, followed by the Global Dow (-1.1%), the Nasdaq (-1.0%), the S&P 500 (-0.8%), and the Dow (-0.7%). Ten-year Treasury yields slipped 6.0 basis points, settling at 3.73%. Crude oil prices declined 0.4% to end the day at about $69.34 per barrel. The dollar and gold prices advanced.

Stock Market Indexes

Market/Index	2022 Close	Prior Week	As of 6/23	Weekly Change	YTD Change
DJIA	33,147.25	34,299.12	33,727.43	-1.67%	1.75%
Nasdaq	10,466.48	13,689.57	13,492.52	-1.44%	28.91%
S&P 500	3,839.50	4,409.59	4,348.33	-1.39%	13.25%
Russell 2000	1,761.25	1,875.47	1,821.63	-2.87%	3.43%
Global Dow	3,702.71	4,118.61	4,014.15	-2.54%	8.41%
Fed. Funds target rate	4.25%-4.50%	5.00%-5.25%	5.00%-5.25%	0 bps	75 bps
10-year Treasuries	3.87%	3.76%	3.73%	-3 bps	-14 bps
US Dollar-DXY	103.48	102.30	102.88	0.57%	-0.58%
Crude Oil-CL=F	$80.41	$71.57	$69.34	-3.12%	-13.77%
Gold-GC=F	$1,829.70	$1,970.00	$1,929.50	-2.06%	5.45%

Chart reflects price changes, not total return. Because it does not include dividends or splits, it should not be used to benchmark performance of specific investments.

Last Week’s Economic News

• The number of residential building permits issued in May rose 5.2% over the previous month’s total, but was 12.7% below the May 2022 rate. Issued building permits for single-family construction in May rose 4.8% above the April figure. Housing starts increased 21.7% in May and are 5.7% above the May 2022 rate. Single-family housing starts jumped 18.5% in May. The overall rise in housing starts was driven by construction in the Midwest, which saw the number of housing starts increase 66.9% in May. Lastly, housing completions in May were 9.5% above the April total. Single-family housing completions were 3.9% above April’s pace.
• Existing home sales inched up 0.2% in May from April, but were down 20.4% from May 2022. According to the latest report from the National Association of REALTORS®, rising mortgage rates and lower inventory have impacted sales of existing homes. Total housing inventory sat at a three-month supply at the current sales pace, up from 2.9 months in April. The median existing-home price for all housing types in May was $396,100, up from $385,900 in April, but down from $408,600 in May 2022. Sales of single-family homes dipped 0.3% in May and 20.0% from May 2022. The median existing single-family home price was $401,100 in May, 2.8% above the April figure ($390,200), but down 3.4% from May 2022 ($415,400).
• The national average retail price for regular gasoline was $3.577 per gallon on June 19, $0.018 per gallon lower than the prior week’s price and $1.385 less than a year ago. Also, as of June 19, the East Coast price decreased $0.013 to $3.419 per gallon; the Midwest price fell $0.024 to $3.489 per gallon; the Gulf Coast price declined $0.036 to $3.109 per gallon; the Rocky Mountain price increased $0.014 to $3.721 per gallon; and the West Coast price dipped $0.015 to $4.569 per gallon.
• For the week ended June 17, there were 264,000 new claims for unemployment insurance, unchanged from the previous week’s level, which was revised up by 2,000. According to the Department of Labor, the advance rate for insured unemployment claims for the week ended June 10 was 1.2%, unchanged from the previous week’s rate. The advance number of those receiving unemployment insurance benefits during the week ended June 10 was 1,759,000, a decrease of 13,000 from the previous week’s level, which was revised down by 3,000. States and territories with the highest insured unemployment rates for the week ended June 3 were California (2.3%), New Jersey (2.1%), Massachusetts (1.9%), New York (1.6%), Oregon (1.6%), Puerto Rico (1.6%), Rhode Island (1.5%), Washington (1.5%), Illinois (1.4%), Nevada (1.4%), and Pennsylvania (1.4%). The largest increases in initial claims for unemployment insurance for the week ended June 10 were in Texas (+7,327), Minnesota (+3,653), Pennsylvania (+3,455), Georgia (+1,918), and Indiana (+1,591), while the largest decreases were in Tennessee (-716), Massachusetts (-655), Idaho (-313), and Iowa (-200).

Eye on the Week Ahead

There’s plenty of important economic data available this week, including two of the more important economic indicators; gross domestic product and the report on personal income and outlays. The third and final iteration of first-quarter GDP is released this week. The latest data showed the economy advanced at a rate of 1.3%. Also, the report on personal income and outlays includes two important sub-categories: personal consumption expenditures and the personal consumption expenditures price index. Consumer spending rose 0.8% in April, while consumer prices for goods and services increased 0.4%.

The Markets (as of market close June 16, 2023)

Stocks advanced for the third straight week, as each of the benchmark indexes listed here climbed higher. Inflationary pressures may finally be subsiding, according to the latest data (see below). In addition, the Federal Reserve held interest rates at their current range following their meeting last week, although there are indications that at least one, and possibly two more rate hikes are in store by the end of the year. With more interest rate hikes forecast, long- and short-term Treasury yields advanced. Despite a dip at the end of the week, the Nasdaq and the S&P 500 had their best week since March. Crude oil prices ebbed and flowed throughout much of the week, ultimately rallying to close higher. The dollar and gold prices declined.

Wall Street saw stocks rally last Monday ahead of inflation data and the Federal Reserve meeting. Traders may have acted based on the anticipation that the Fed would not hike interest rates. Information technology, consumer discretionary, and communication services led the market sectors. The Nasdaq gained 1.5%, the S&P 500 rose 0.9%, the Dow added 0.6%, the Russell 2000 advanced 0.4%, and the Global Dow increased 0.3%. Crude oil prices dropped 4.2%, settling at about $67.24 per barrel, the lowest price since December 2021. Ten-year Treasury yields inched up 2.0 basis points to 3.76%. The dollar climbed marginally higher, while gold prices dipped lower.

Stocks followed last Monday’s solid performance with another rally last Tuesday. The Russell 2000, which is generally sensitive to economic data, jumped 1.2% following last Tuesday’s Consumer Price Index (see below). The Global Dow rose 0.9%, the Nasdaq gained 0.8%, the S&P 500 advanced 0.7%, and the Dow edged up 0.4%. With the possibility that the Federal Reserve might pause interest rate increases, the dollar and gold prices slid lower. The yield on 10-year Treasuries rose 7.4 basis points to close at 3.83%. Crude oil prices jumped 3.1% to reach $69.20 per barrel.

Last Wednesday saw stocks end mixed, with the Dow sliding 0.7% and the Russell 2000 falling 1.2%, while the Global Dow (0.7%), the Nasdaq (0.4%), and the S&P 500 (0.1%) closed higher. The day began with a moderate selloff, only to pick up the pace following the Federal Reserve’s policy announcement (see below). The yield on 10-year Treasuries dipped 4.3 basis points to close at 3.79%. The dollar and gold prices declined. Crude oil prices gave back gains from the previous day after falling 1.1% to settle at about $68.68 per barrel.

Investors moved to equities last Thursday, driving each of the benchmark indexes listed here higher. Inflation indicators out last week showed price pressures may be cooling, although the Federal Reserve is suggesting more interest rate hikes are in the offing this year. The Dow led the indexes, climbing 1.3%, followed by the S&P 500 and the Nasdaq (1.2%), the Russell 2000 (0.9%), and the Global Dow (0.7%). In what is proving to be a volatile week, crude oil prices reversed the prior day’s trend, closing up 3.4% to about $70.58 per barrel. Ten-year Treasury yields fell 6.8 basis points, closing at 3.72%. The dollar fell, while gold prices inched higher.

Stocks slid lower to close out the week. Of the benchmark indexes listed here, only the Global Dow posted a gain, advancing 0.2% by the close of trading last Friday. The Russell 2000 (-0.8%), the Nasdaq (-0.7%), the S&P 500 (-0.4%), and the Dow (-0.3%) closed lower. Ten-year Treasury yields added 4.1 basis points to close at 3.76%. Crude oil prices rose for the second straight day, advancing $1.04, or 1.5%. The dollar inched higher, while gold prices dipped lower.

Stock Market Indexes

Market/Index	2022 Close	Prior Week	As of 6/16	Weekly Change	YTD Change
DJIA	33,147.25	33,876.78	34,299.12	1.25%	3.48%
Nasdaq	10,466.48	13,259.14	13,689.57	3.25%	30.79%
S&P 500	3,839.50	4,298.86	4,409.59	2.58%	14.85%
Russell 2000	1,761.25	1,865.71	1,875.47	0.52%	6.49%
Global Dow	3,702.71	4,005.54	4,118.61	2.82%	11.23%
Fed. Funds target rate	4.25%-4.50%	5.00%-5.25%	5.00%-5.25%	0 bps	75 bps
10-year Treasuries	3.87%	3.74%	3.76%	2 bps	-11 bps
US Dollar-DXY	103.48	103.57	102.30	-1.23%	-1.14%
Crude Oil-CL=F	$80.41	$70.38	$71.57	1.69%	-10.99%
Gold-GC=F	$1,829.70	$1,975.00	$1,970.00	-0.25%	7.67%

Chart reflects price changes, not total return. Because it does not include dividends or splits, it should not be used to benchmark performance of specific investments.

Last Week’s Economic News

• In a move that was not totally unexpected, the Federal Open Market Committee decided to maintain the present target range for the federal funds rate at 5.00%-5.25%. The Committee noted that, while economic activity continued to expand and job growth was robust, inflation remained elevated. However, the FOMC proffered that it was unable to determine the effects that tighter credit conditions would have on households and businesses. To that extent, holding the target range steady allows the Committee to assess additional information and its implications for monetary policy. In determining the direction of its monetary policy going forward, the Committee will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.
• The Consumer Price Index edged up 0.1% in May, slightly below most expectations and under the April increase of 0.4%. For the 12 months ended in May, the CPI rose 4.0%, the smallest 12-month increase since the period ended March 2021. The index for shelter (+0.6%) was the largest contributor to the monthly increase, followed by an increase in the index for used cars and trucks (+4.4%). The food index increased 0.2% in May after being unchanged in the previous two months. The energy index declined 3.6% in May. The CPI less food and energy rose 0.4% in May, the same increase as in April and March. This report might support a pause in interest rate increases by the Federal Reserve.
• Prices producers received for the sale of goods and services declined 0.3% in May after advancing 0.2% in April. For the 12 months ended in May, producer prices moved up 1.1%. The decrease in producer prices is attributable to a 1.6% drop in prices for goods, the largest decrease since July 2022. Prices for services increased 0.2% in May. Producer prices less foods, energy, and trade services were unchanged in May after inching up 0.1% in April. For the 12 months ended in May, prices less foods, energy, and trade services increased 2.8%. In May, prices for energy fell 6.8%, while prices for food decreased 1.3%.
• In yet another sign that inflation might be declining, May saw import prices fall 0.6% and export prices decline 1.9%, according to the latest report from the Bureau of Labor Statistics. Import prices fell 5.9% for the year ended in May, the largest 12-month decline since the comparable period ended May 2020. Import prices for fuel fell 6.4% in May after rising 4.1% in April. This is the largest one-month drop in import fuel prices since August 2022. Nonfuel import prices dipped 0.1% in May. Nonfuel import prices declined 1.6% since May 2022. The May decrease in export prices was the largest monthly decline since December 2022. In May, lower prices for nonagricultural exports and agricultural exports each contributed to the overall decrease in export prices. Export prices fell 10.1% for the year ended in May, the largest 12-month decline since the series was first published in September 1984.
• Sales at the retail level rose 0.3% in May and have increased 1.6% since May 2022. Retail trade sales also increased 0.3% in May. Nonstore retail sales were up 6.5% from last year, while sales at food services and drinking places were up 8.0% from May 2022.
• Industrial production declined 0.2% in May, following two consecutive monthly increases. Most of the major market groups declined in May, with final products and materials down 0.1% and 0.3%, respectively. Manufacturing edged up 0.1% in May, while the indexes for utilities and mining fell 1.8% and 0.4%, respectively. Despite the downturn in May, total industrial production was 0.2% above its year-earlier level.
• The government deficit for May was $240.0 billion, well above the May 2022 deficit of $66.2 billion. In May, government receipts were $307.5 billion and expenditures totaled $547.8 billion. Through the first eight months of the fiscal year, the government deficit sits at $1,164.9 trillion, significantly higher than the $426.2 billion deficit over the comparable period from the previous fiscal year.
• The national average retail price for regular gasoline was $3.595 per gallon on June 12, $0.054 per gallon higher than the prior week’s price but $1.411 less than a year ago. Also, as of June 12, the East Coast price increased $0.022 to $3.432 per gallon; the Midwest price rose $0.083 to $3.513 per gallon; the Gulf Coast price advanced $0.080 to $3.145 per gallon; the Rocky Mountain price increased $0.053 to $3.707 per gallon; and the West Coast price rose $0.061 to $4.584 per gallon.
• For the week ended June 10, there were 262,000 new claims for unemployment insurance, unchanged from the previous week’s level, which was revised up by 1,000. According to the Department of Labor, the advance rate for insured unemployment claims for the week ended June 3 was 1.2%, unchanged from the previous week’s rate. The advance number of those receiving unemployment insurance benefits during the week ended June 3 was 1,775,000, an increase of 20,000 from the previous week’s level, which was revised down by 2,000. States and territories with the highest insured unemployment rates for the week ended May 27 were California (2.2%), New Jersey (2.1%), Massachusetts (1.9%), New York (1.6%), Oregon (1.6%), Puerto Rico (1.5%), Rhode Island (1.5%), Washington (1.5%), Alaska (1.4%), and Illinois (1.4%). The largest increases in initial claims for unemployment insurance for the week ended June 3 were in Ohio (+6,447), California (+4,103), Minnesota (+2,693), Pennsylvania (+2,069), and Tennessee (+732), while the largest decreases were in Connecticut (-2,544), New York (-1,325), Texas (-617), New Jersey (-560), and Oregon (-450).

Eye on the Week Ahead

This week focuses on the housing sector. The May figures on housing starts and building permits are out this week. In April, the number of issued building permits declined for all housing types, however building permits for single-family construction advanced over 3.0%. Housing starts increased for all housing types. The latest data on existing home sales is also available this week. Sales of existing homes declined in April, as total housing inventory sat at just below three months, while existing home prices increased.

The Markets (as of market close June 9, 2023)

Stocks closed another week higher, with each of the benchmark indexes listed here posting gains. With last week’s advance, the Nasdaq has risen for seven consecutive weeks, while the S&P 500 hit its highest level since August 2022. The S&P 500 is more than 20% above its October 2022 low, putting it in bull territory. The Russell 2000 led the indexes, despite falling at the end of last week. The Global Dow also gained more than 1.0%. Long-term bond prices held steady, with yields on 10-year Treasuries inching up 5.0 basis points on the week. Crude oil prices fell for the second consecutive week. The dollar dipped lower, while gold prices edged higher.

Stocks ended last Monday lower, as late-day selling wiped out gains from earlier in the day. The small caps of the Russell 2000 took the biggest hit among the benchmark indexes listed here, falling 1.3%. The Dow lost 0.6%, the S&P 500 slipped 0.2%, while the Global Dow and the Nasdaq dipped less than 0.1%. The dollar and yields on 10-year Treasuries were flat, while gold prices edged higher. Crude oil prices barely moved, closing at $71.80 per barrel, even after Saudi Arabia indicated it would cut oil output by 1 million barrels per day starting in July. The remaining OPEC+ countries agreed to hold to their current oil production through the remainder of the year.

Wall Street rebounded last Tuesday, with several sectors performing well including financials and consumer discretionary. The Russell 2000 more than recouped its losses from the previous day, climbing 2.7%. The Global Dow and the Nasdaq rose 0.4%, followed by the S&P 500 (0.2%). The Dow ended the session flat. Yields on 10-year Treasuries remained at 3.69% for the third straight session. Crude oil prices fell nearly 1.0% to close at around $71.52 per barrel. The dollar and gold prices advanced.

Stocks closed with mixed results last Wednesday. A downturn in mega-cap tech stocks pulled the Nasdaq (-1.30%) and the S&P 500 (-0.4%) lower. The Russell 2000 jumped 1.8%, the Dow added 0.3%, while the Global Dow eked out a 0.1% gain. Bond prices slid, driving yields higher, with 10-year Treasury yields gaining 8.5 basis points to close at 3.78%. The Bank of Canada hiked interest rates in a somewhat unexpected move, which may have led some investors to believe the Fed is not done with its rate increases. Crude oil prices rose 1.1% to hit $72.52 per barrel. The dollar was flat, while gold prices slumped 1.3% to $1,956.20 per ounce.

Last Thursday saw mega caps recover much of Wednesday’s losses, helping to lift the benchmark indexes higher. The Nasdaq added 1.0%, followed by the S&P 500 (0.6%), with the Dow and the Global Dow gaining 0.5%. The small caps of the Russell 2000 edged lower, falling 0.4%. Ten-year Treasury yields dipped 7.0 basis points to close at 3.71%. Crude oil prices continued to ride an ebb and flow, following last Wednesday’s gains by falling 0.6% to $70.89 per barrel. The dollar and gold prices were flat.

Stocks ended last week on a high note (expect for small-cap stocks). While last Friday’s gains enjoyed by most of the benchmark indexes listed here weren’t particularly notable, each index added between 0.1%-0.2% by the close of trading. Only the small-cap heavy Russell 2000 closed the session in the red, falling 0.8%. Ten-year Treasury yields settled at 3.74%, up about 3.1 basis points from the previous day’s close. Crude oil prices fell 1.3% to $70.38 per barrel. The dollar advanced, while gold prices slid marginally.

Stock Market Indexes

Market/Index	2022 Close	Prior Week	As of 6/9	Weekly Change	YTD Change
DJIA	33,147.25	33,762.76	33,876.78	0.34%	2.20%
Nasdaq	10,466.48	13,240.77	13,259.14	0.14%	26.68%
S&P 500	3,839.50	4,282.37	4,298.86	0.39%	11.96%
Russell 2000	1,761.25	1,830.91	1,865.71	1.90%	5.93%
Global Dow	3,702.71	3,953.32	4,005.54	1.32%	8.18%
Fed. Funds target rate	4.25%-4.50%	5.00%-5.25%	5.00%-5.25%	0 bps	75 bps
10-year Treasuries	3.87%	3.69%	3.74%	5 bps	-13 bps
US Dollar-DXY	103.48	104.05	103.57	-0.46%	0.09%
Crude Oil-CL=F	$80.41	$71.92	$70.38	-2.14%	-12.47%
Gold-GC=F	$1,829.70	$1,964.90	$1,975.00	0.51%	7.94%

Chart reflects price changes, not total return. Because it does not include dividends or splits, it should not be used to benchmark performance of specific investments.

Last Week’s Economic News

• In May, business activity in the services sector expanded at the fastest pace since April 2022, according to the S&P Global US Services PMI™. Increased demand drove new orders in both the domestic and export markets, which drove firms to increase their hiring activity. Survey respondents noted that greater client confidence supported the expansion in new orders, as customers, especially in consumer markets, were more inclined to spend.
• In April, the goods and services trade deficit increased by $14.0 billion to $74.6 billion. Exports fell $9.2 billion, while imports increased $4.8 billion. Year to date, the goods and services deficit decreased $86.5 billion, or 23.9%, from the same period in 2022. Exports increased $55.9 billion, or 5.8%. Imports decreased $30.6 billion, or 2.3%.
• The national average retail price for regular gasoline was $3.541 per gallon on June 5, $0.030 per gallon lower than the prior week’s price and $1.335 less than a year ago. Also, as of June 5, the East Coast price decreased $0.017 to $3.410 per gallon; the Midwest price declined $0.054 to $3.430 per gallon; the Gulf Coast price fell $0.056 to $3.065 per gallon; the Rocky Mountain price advanced $0.032 to $3.654 per gallon; and the West Coast price decreased $0.011 to $4.523 per gallon.
• For the week ended June 3, there were 261,000 new claims for unemployment insurance, an increase of 28,000 from the previous week’s level, which was revised up by 1,000. This is the highest level for initial claims since October 30, 2021, when it was 264,000. According to the Department of Labor, the advance rate for insured unemployment claims for the week ended May 27 was 1.2%, unchanged from the previous week’s rate. The advance number of those receiving unemployment insurance benefits during the week ended May 27 was 1,757,000, a decrease of 37,000 from the previous week’s level, which was revised down by 1,000. States and territories with the highest insured unemployment rates for the week ended May 20 were California (2.2%), New Jersey (2.1%), Massachusetts (1.8%), New York (1.6%), Oregon (1.6%), Puerto Rico (1.5%), Rhode Island (1.5%), Washington (1.5%), Alaska (1.4%), and Illinois (1.4%). The largest increases in initial claims for unemployment insurance for the week ended May 27 were in Ohio (+2,159), Texas (+1,229), New York (+1,177), Illinois (+1,117), and Missouri (+962), while the largest decreases were in California (-771), Arkansas (-455), Iowa (-419), North Carolina (-388), and Michigan (-365).

Eye on the Week Ahead

The Federal Open Market Committee meets this week. Many speculate that the Committee will not raise interest rates at this time. However, it is unlikely that the abatement of interest rate increases will last past the July meeting.

The Markets (as of market close June 2, 2023)

Stocks began the week on a downturn, but rallied later to end last week higher. Each of the benchmark indexes listed here posted solid weekly gains, led by the Russell 2000, followed by the Nasdaq, the Dow, the S&P 500, and the Global Dow. Investors began the week concerned that the debt ceiling agreement between President Biden and House Speaker McCarthy would not pass the House and Senate. However, both chambers of Congress passed the debt ceiling bill later in the week, removing the risk of government default. In addition, investors may have been encouraged by a strong jobs report (see below), which is somewhat paradoxical as a strong labor market could support more interest rate hikes by the Federal Reserve. Nevertheless, Wall Street ended the week on a positive note. The Nasdaq rose for the sixth consecutive week, the longest weekly winning streak since January 2020. Despite a surge last Thursday and Friday, crude oil prices ended the week lower. The yield on 10-year Treasuries slipped lower, while the dollar changed little. Gold prices advanced nearly 1.0%.

Stocks were mixed last Tuesday following the Memorial Day holiday. Despite an apparent debt ceiling agreement between President Biden and House Speaker McCarthy, investors remained jittery ahead of a Congressional vote. The Nasdaq (0.3%) was the only benchmark index of those listed here to post a gain. The S&P 500 ended the session flat, the Russell 2000 and the Global Dow fell 0.3%, and the Dow dipped 0.2%. Ten-year Treasury yields dropped 11.0 basis points to close at 3.70%. The dollar dipped lower, while gold prices rose 0.8%. Crude oil prices declined 4.0% to $69.75 per barrel, impacted by debt ceiling worries and reported tensions between Saudi Arabia and Russia ahead of an important OPEC+ meeting.

Wall Street endured another sour day last Wednesday as investors remained concerned about the passage of the debt ceiling bill. In addition, the latest JOLTS report (see below) showed the number of job openings increased, raising the prospects of another interest rate hike by the Federal Reserve in June. The Global Dow fell 1.3%, likely impacted by China’s lackluster industrial production report. The Russell 2000 dipped 1.0%, the Nasdaq and the S&P 500 lost 0.6%, while the Dow slipped 0.4%. Bond prices jumped higher, pulling yields lower. Ten-year Treasury yields lost 6.3 basis points to close at 3.63%. Crude oil prices fell 2.5% to $67.71 per gallon. The dollar and gold prices advanced.

Equities advanced last Thursday as stocks kicked off June on an upswing, with each of the benchmark indexes listed here posting notable gains. No doubt investors were encouraged by the House’s passage of the debt ceiling bill. The Global Dow (1.5%) led the way, followed by the Nasdaq (1.3%), the Russell 2000 (1.1%), the S&P 500 (1.00%), and the Dow (0.5%). Ten-year Treasury yields continued to trend lower, falling 2.9 basis points to settle at 3.60%. Crude oil prices rebounded, climbing 3.1% to reach $70.18 per barrel. The dollar slid lower, while gold prices advanced 0.7%.

Stocks pushed higher last Friday on positive jobs data (see below) and the passage of the debt ceiling bill by Congress. The Russell 2000 jumped 3.6%, followed by the Dow (2.1%), which enjoyed its best day of the year. The Global Dow rose 1.7%, the S&P 500 advanced 1.5%, and the Nasdaq increased 1.1%. Ten-year Treasury yields closed at 3.69%. Crude oil prices increased 2.7% to $71.97 per barrel, the dollar edged higher, while gold prices declined.

Stock Market Indexes

Market/Index	2022 Close	Prior Week	As of 6/2	Weekly Change	YTD Change
DJIA	33,147.25	33,093.34	33,762.76	2.02%	1.86%
Nasdaq	10,466.48	12,975.69	13,240.77	2.04%	26.51%
S&P 500	3,839.50	4,205.45	4,282.37	1.83%	11.53%
Russell 2000	1,761.25	1,773.02	1,830.91	3.27%	3.96%
Global Dow	3,702.71	3,894.49	3,953.32	1.51%	6.77%
Fed. Funds target rate	4.25%-4.50%	5.00%-5.25%	5.00%-5.25%	0 bps	75 bps
10-year Treasuries	3.87%	3.81%	3.69%	-12 bps	-18 bps
US Dollar-DXY	103.48	104.21	104.05	-0.15%	0.55%
Crude Oil-CL=F	$80.41	$72.78	$71.92	-1.18%	-10.56%
Gold-GC=F	$1,829.70	$1,947.00	$1,964.90	0.92%	7.39%

Chart reflects price changes, not total return. Because it does not include dividends or splits, it should not be used to benchmark performance of specific investments.

Last Week’s Economic News

• The labor sector remained strong in May. According to the latest data from the Bureau of Labor Statistics, there were 339,000 new jobs added in May, in line with the average monthly gain of 341,000 over the prior 12 months. In May, job gains occurred in professional and business services, government, health care, construction, transportation and warehousing, and social assistance. Despite the new hires, May saw the unemployment rate rise by 0.3 percentage point to 3.7%, and the number of unemployed persons increase by 440,000 to 6.1 million. The unemployment rate has ranged from 3.4% to 3.7% since March 2022. The labor force participation rate, at 62.6% has not changed over the past three months. The employment-population ratio dipped 0.1 percentage point to 60.3%. In May, average hourly earnings rose by $0.11, or 0.3%, to $33.44. Over the past 12 months, average hourly earnings have increased by 4.3%. The average workweek edged down by 0.1 hour to 34.3 hours in May.
• The number of job openings edged up 358,000 to 10.1 million in April. Job openings increased in retail trade, health care and social assistance, and transportation, warehousing, and utilities. In April, the number of hires changed little at 6.1 million. Total separations, which include quits, layoffs, discharges, and other separations, declined 286,000 to 5.7 million.
• Manufacturing slowed in May after expanding in April. The S&P Global US Manufacturing Purchasing Managers’ Index™ posted 48.4 in May, down from 50.2 in April. A reading under 50 indicates contraction. A reduction in new orders and muted overall demand slowed manufacturing. Despite the regression in demand, manufacturers increased output and employment, partly to fulfill existing backlogs of work, and to take advantage of a reduction in input costs to manufacturers, which fell for the first time since May 2020.
• The national average retail price for regular gasoline was $3.571 per gallon on May 29, $0.037 per gallon higher than the prior week’s price but $1.053 less than a year ago. Also, as of May 29, the East Coast price increased $0.046 to $3.427 per gallon; the Gulf Coast price rose $0.081 to $3.121 per gallon; the Midwest price increased $0.015 to $3.484 per gallon; the Rocky Mountain price advanced $0.043 to $3.622 per gallon; and the West Coast price climbed $0.020 to $4.534 per gallon.
• For the week ended May 27, there were 232,000 new claims for unemployment insurance, an increase of 2,000 from the previous week’s level, which was revised up by 1,000. According to the Department of Labor, the advance rate for insured unemployment claims for the week ended May 20 was 1.2%, unchanged from the previous week’s rate. The advance number of those receiving unemployment insurance benefits during the week ended May 20 was 1,795,000, an increase of 6,000 from the previous week’s level, which was revised down by 5,000. States and territories with the highest insured unemployment rates for the week ended May 13 were California (2.2%), New Jersey (2.1%), Massachusetts (2.0%), New York (1.6%), Oregon (1.6%), Puerto Rico (1.6%), Alaska (1.5%), Rhode Island (1.5%), Washington (1.5%), and Illinois (1.4%). The largest increases in initial claims for unemployment insurance for the week ended May 20 were in Texas (+2,808), Connecticut (+2,091), Iowa (+621), Pennsylvania (+540), and Missouri (+324), while the largest decreases were in Massachusetts (-2,127), Michigan (-1,024), Illinois (-1,000), New York (-625), and Oregon (-565).

Eye on the Week Ahead

There is very little economic data available during the first full week of June. The services purchasing managers’ index for May is available. April saw growth in the services sector, with new orders posting their best rate of growth since May 2022. Also out this week is the report on international trade in goods and services for April. March saw the trade deficit narrow by about $64.0 billion, as both imports and exports edged higher.