Stock Market Outlook for June 7, 2019
Non-farm payroll report due before the opening bell. On average, payrolls increase by 0.7% in May, before factoring in seasonal adjustments. This would imply the actual (non-seasonally adjusted) addition of 1.057 million payrolls in the month.
*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities. As always, the use of technical and fundamental analysis is encouraged in order to fine tune entry and exit points to average seasonal trends.
Stocks Entering Period of Seasonal Strength Today:
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American Water Works Co. Inc. (NYSE:AWK) Seasonal Chart
Duke Energy Corp. (NYSE:DUK) Seasonal Chart
Consolidated Edison, Inc. (NYSE:ED) Seasonal Chart
Mallinckrodt plc (NYSE:MNK) Seasonal Chart
Inter Pipeline Ltd. (TSE:IPL.TO) Seasonal Chart
Procter & Gamble Co. (NYSE:PG) Seasonal Chart
Brookfield Renewable Energy Partners LP (TSE:BEP/UN.TO) Seasonal Chart
The Markets
Stocks posted strong gains for a third straight session on Thursday as negative bets following the May downturn continue to be pinched. The S&P 500 Index added just over six-tenths of one percent, moving above its 20-day moving average at 2827. Resistance at the 50-day, now at 2869, will be a tougher nut to crack without a catalyst of some sort. A momentum buy signal with respect to MACD was triggered by the close of the session. Energy and material stocks topped the leaderboard as commodity prices caught a bid amidst the decline in the US Dollar.
The currency will be in focus again on Friday when the Bureau of Labor Statistics releases its employment report for the month of May. Analysts are expecting an increase of 180,000 payrolls for the month just past, much greater than the 27,000 payrolls that ADP forecasted in its report released on Wednesday. On average, payrolls increase by 0.7% in the fifth month of the year, before factoring in seasonal adjustments. This would imply the actual addition of 1.057 million payrolls in the month. Payroll growth has been trending above average year-to-date, suggesting a healthy labor market. We’ll be sending out a complete breakdown and analysis to subscribers once the results are tallied. Subscribe now.
On Thursday, the EIA indicated that natural gas in storage had increased by 119 billion cubic feet (bcf), a slight escalation versus the week prior when the commodity added 114 bcf. The price of Natural Gas fell to a new multi-year low, violating a key level of long-term support at $2.50. The next levels of significance are below $2, as represented by the 2012 and 2016 lows at $1.90 and $1.60, respectively. Between here and there, price is fair game in terms of where the commodity might find buying demand. We sent out further insight and analysis to subscribers, touching on the three prongs to our analysis that we use to make our decision to invest.
Sentiment on Thursday, as gauged by the put-call ratio, ended bullish at 0.85.
Seasonal charts of companies reporting earnings today:
- No significant earnings scheduled
S&P 500 Index
TSE Composite
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