May Job Report, Meme Stocks Grab Headlines

Summary of content for the week of Jun 4:

1. Week 22 major indexes performance;

2. Week 22 US sector indexes performance;

3.Major indexes weekly charts of support and resistance levels;

4. Major indexes monthly performance for May

U.S

All three U.S major indexes closed moderately higher for the week ended Jun 4. It’s at the end of the month of May, both DJI and SPX closed 4^th week up in a row, but technology-heavy Nasdaq Composite Index(COMP) closed down. Refer to major indexes weekly and monthly performance tables below.

Major events happened during the period:

1.    Closely watched May nonfarm payrolls report on Friday shows a total of 559k jobs added in May, somehow below the 650k consensus forecasts. On the other hand, this was double the payroll gains in Apr, signaling that hiring momentum is building as the reopening progresses. That’s why stocks reacted positively and closed at a weekly high. 

2.    Crude Oil prices reached their highest level in more than two years. WTI crude oil price closed at 69.41 per barrel for the week. 

3.    “Meme” stocks- small-cap, consumer-oriented shares actively discussed on social media, under the spotlight. Shares such as AMC, BlackBerry(BB) experienced particularly heavy trading and volatility.

Within SPX 11 sectors, Energy(XLE) performed best as oil prices hit a new high. Consumer Discretionary(XLY) and Healthcare(XLV) lagged, Consumer Discretionary shares weighed down by a decline in Tesla(TSLA). Refer to below weekly sector indexes for details.

Technically, the three major indexes' weekly charts remain in strong uptrend. Refer to below major indexes weekly charts.

China/HK

China's SSE index retreated after a three-week rally in a row. SSE index was down 0.25% in the week. China surprisingly announced on May 31 that it would relax the current two-child policy and allow a three-child rule, many economists believe that the measure will do little to alter the trajectory of the country’s looming demographic crisis.

Hang Seng Index(.HSI) retreated this week after two-week up in a row. Both China SSE and .HSI indexes weekly charts are bullish.

Singapore

STI index retreated after a two-week gain streak. ASEAN-EU sealed the world’s first bloc-to-bloc air transport pact this week, which will enhance air connectivity between ASEAN and Europe. Positive for Airlines and related stocks.

STI weekly chart in range-bound, immediate resistance at 3237 recent high and major support at 3024.