Call toll-free 800.328.1267
June is starting, with major catalysts over the next eight sessions.
First is Apple (AAPL). The smart-phone giant has mostly been excluded from the AI boom, but that could change with analysts widely expecting CEO Tim Cook to unveil new functionality in his speech at 1 p.m. ET on Monday, June 10. Could it spur an upgrade cycle?
Wednesday, June 12, is another big day. It begins with the Consumer Price Index (CPI) inflation at 8:30 a.m. The Federal Reserve announces monetary policy and its outlook for interest rates (“dot plot”) at 2 p.m. Both events could have major impacts on the stock market, potentially confirming hopes that the post-pandemic inflationary spiral is fading.
This week is also busy. The European Central Bank is expected to cut interest rates on Thursday and U.S. jobs data is on Friday. Still, next week’s catalysts could be more important because they most directly impact domestic borrowing costs.
The S&P 500 rose 4.8 percent in May, rebounding from April’s pullback. Traders could see some potentially bullish patterns on the daily chart.
First, the index probed below its low from two weeks prior but rebounded. It was reminiscent of the tight price action in between November and March as stocks pushed to record highs.
Second, Friday’s session featured a higher high and higher low than Thursday. The resulting bullish outside candle can suggest that buyers remain in control.
Third, the index remained above its 21-day exponential moving average.
While last month saw AI continue to boost technology stocks like Nvidia (NVDA), there were signs of rotation away from growth names.
Software companies were one weak spot — especially after Saleforce.com (CRM) missed revenue estimates on May 29. Smaller peers like Paycom Software (PAYC), Dayforce (DAY) and MongoDB (MDB) also fell.
Utilities, on the other hand, led the market for a second straight month as investors looked for AI to boost demand for electricity. Traditional retailers like Deckers Outdoor (DECK), Best Buy (BBY), Foot Locker (FL) and Ralph Lauren (RL) also climbed on strong quarterly results.
| Top Gainers in the S&P 500 Last Month | ||
| First Solar (FSLR) | +54% | The maker of solar panels jumped as AI fueled demand for clean energy. Chinese competitors also shunned price wars. |
| Deckers Outdoor (DECK) | +34% | The footwear maker jumped to another record high after results beat estimates on strong demand for its UGG and HOKA brands. |
| Vistra (VST) | +31% | The utility company beat earnings and revenue estimates amid strong electricity demand. |
| HP (HPQ) | +30% | The computer hardware maker beat estimates and said AI will contribute to growth in coming quarters. |
| Moderna (MRNA) | +29% | The drug maker reported better-than-expected quarterly results and rallied after Barron’s reported it’s working with Pfizer (PFE) on a potential avian flu inoculation. |
| Top Decliners in the S&P 500 Last Month | ||
| EPAM Systems (EPAM) | -24% | The software company forecast weak earnings and revenue because macro conditions failed to improve as hoped. |
| Paycom Software (PAYC) | -23% | The provider of HR software guided revenue and EBITDA below consensus. |
| Dayforce (DAY) | -19% | The provider of HR software initially held its ground after beating estimates, but followed peers lower at the end of the month. |
| Global Payments (GPN) | -17% | The financial processor kept sliding after failing to lift a cautious outlook from earlier in the year. |
| Expedia (EXPE) | -16% | The travel stock lowered its guidance amid weak demand at its VRBO vacation-rental business. |
| Utilities | +9% |
| Technology | +7.1% |
| Communications | +6.9% |
| Real Estate | +5.1% |
| S&P 500 | +4.8% |
| Materials | +3.3% |
| Financials | +3.2% |
| Consumer Staples | +2.5% |
| Healthcare | +2.4% |
| Industrials | +1.6% |
| Consumer Discretionary | +0.2% |
| Energy | -0.3% |
Below are some key economic events from last month.
Below are some noteworthy commentaries:
| Product | Current Month | Expiration | Next Month | 1-Mon% |
| S&P 500 E-Mini (@ES) | ESM24 (Jun) | 6/21/24 | ESU24 | +4.6% |
| Nasdaq-100 E-Mini (@NQ) | NQM24 (Jun) | 6/21/24 | NQU24 | +5.7% |
| Dow Jones E-Mini (@YM) | YMM24 (Jun) | 6/21/24 | YMU24 | +2.2% |
| Russell 2000 E-Mini (@RTY) | RTYM24 (Jun) | 6/21/24 | RTYU24 | +4.8% |
| Date | Event | What to Watch For |
| Fri 6/7 | Non-farm payrolls | Hiring and wage trends in May |
| Mon 6/10 | Apple’s World Wide Developers Conference | Potential AI news |
| Wed 6/12 8:30 a.m. ET | Consumer price index (CPI) | Inflation trends |
| Wed 6/12 2 p.m. ET | Federal Reserve meeting | News on monetary policy, including interest-rate forecasts. |
| Tue 6/18 | Retail sales | The strength of consumer spending |
Security futures are not suitable for all investors. To obtain a copy of the security futures risk disclosure statement visit www.TradeStation.com/DisclosureFutures.
Bears hit the stock market last week as the Nasdaq-100 showed signs of a potential reversal. The technology-heavy index fell 3.4 percent between Friday, November 8, and Friday November 15. It was the biggest drop since early September, erasing two-thirds of the...
TradeStation recently increased its window for extended-hours trading. This article will consider some of the tools that might help in the pre- and post-market. The first application is Chart Analysis, which typically shows only regular stock-market hours of 9:30 a.m....
The S&P 500 just had its biggest weekly rally in a year, but Verizon Communications didn’t participate. Are the bears moving in? The first pattern on today’s chart is the trio of drops following the last three quarterly reports. Those may reflect ... For more,...