Three Things to Watch
- Plenty of economic data will be out this week, highlighted by Friday’s release of the May employment report. Nonfarm payrolls are expected to increase 89,000 with the unemployment report steady at 4.3%. With inflation continuing to run hotter, that probably does nothing in terms of U.S. Federal Reserve (Fed) expectations, which are currently showing greater odds of a Fed increase than an interest rate cut for the balance of this year.
- Investors will also get fresh looks at manufacturing and services from the Institute for Supply Management (ISM), as well as the Fed’s Beige Book report on regional economic conditions. Of particular interest is the ISM manufacturing report, which is expected above 50 (indicating expansion) for the fifth consecutive month.
- FedEx will complete the spinoff of FedEx Freight this week, creating another standalone S&P 500 company, and Quantinuum, the Honeywell-backed quantum computing company, is expected to IPO this week.
Three Things to Know
- At the end of May, artificial intelligence stocks hit a high as a percentage of the S&P 500 at 48.7%. (Source: Bianco Research)
- “Sell in May and go away” is a well-known saying in finance based on stocks’ supposedly underperforming during the six months from May 1 to Oct. 31. Since 1990, the S&P 500 has averaged a return of about 3% annually from May to October versus about 6.3% from November to April. (Source: Investopedia)
- On June 1, 2024, the world’s largest-ever election ended in India after six weeks with 642 million people voting in the country’s general election, including a record 312 million women. (Source: On This Day)
The above information reflects the current opinion of the author. It is based upon sources and
data believed to be accurate and reliable. Opinions and forward-looking statements expressed
are subject to change without notice. This information does not constitute a solicitation or an
offer to buy or sell any security mentioned.