Is the bull blowing yet?
US stocks rose on Friday afternoon, with all three major indexes showing gains for the week. Trading has been relatively quiet in recent days, with investors largely in wait-and-see mode ahead of next week’s inflation data and the Federal Reserve’s interest rate decision.
However, many shares produced a large rally – with this, the S&P 500 exited the bear market on Thursday, as it had already moved from its lowest point in October, the index went above 4300 points. Meanwhile, the Nasdaq Composite posted its longest weekly winning streak since 2019.
Tesla, which has been rising all week, continued its rally after General Motors said that starting in 2025, Tesla will produce electric vehicles with charging ports. Chipmakers extended their strong gains for the year as shares of Nvidia and Advanced Micro Devices soared on growing interest in companies at the forefront of artificial intelligence and computing.
The S&P 500 rose 0.12%, while the Nasdaq Composite rose 0.16%. The Dow Jones industrial average rose by 43 points, or 0.13%.
The yield on the 10-year bond rose to 3.735% from 3.714% a day earlier. Yields rise as bond prices fall.
The S&P 500 is at a peak not seen since August
The S&P 500 rose slightly on Friday, hitting the benchmark 4,300 for the first time since August 2022, as investors awaited new inflation data next week and the Federal Reserve’s latest policy announcement. The index rose by 0.2%, while the Nasdaq Composite was 0.3% higher compared to the opening level. The Dow Jones rose 48 points, or 0.1%.
Tesla’s shorts fell hard
Traders shorting Tesla stock lost about $6.08 billion during the company’s recent winning streak, according to data from S3 Partners. Tesla shares have risen by about 35% since May 24, and if the rally continues, it will last for 11 consecutive trading days, reports Reuters.
Tesla holds the title of the largest short position worldwide, with $22.43 billion worth of shares sold short.
In 2023 alone, traders shorted 15.3 million new Tesla shares worth $3.6 billion.
American stock markets are setting new highs this year
The S&P 500 and Nasdaq hit fresh 2023 highs on Friday, as rapid gains in Tesla and tech stocks offset concerns over the Federal Reserve’s policy outcome and next week’s inflation data.
Tesla shares are up 4.9 percent year-to-date and on their longest winning streak since January 2021 after General Motors agreed to use the company’s Supercharger network. GM shares rose 2.5 percent.
The benchmark S&P 500 closed 20 percent above its closing low on Oct. 12 on Thursday, signaling the start of a new bull market, according to some market participants.
The development of Tesla’s exchange rate
There hasn’t been such momentum in New York for a month and a half
The S&P 500 SPX, 0.19% rose 21 points, or 0.5%, to 4,315, while the Nasdaq Composite added 0.6% to 13,322, while the Dow Jones Industrial Average added 0.3% to 33,931 jumped up.
All three major indexes are on track to post their biggest weekly gains since late April.
Although Friday was a relatively calm day, with little economic data released, investors looked ahead to next week, when May inflation data and the Federal Reserve’s interest rate decision will be decisive. The markets are now expecting that the central bank may skip a round of tightening.
The papers of Duna House circulate without a dividend coupon
Yesterday was the last day when you could buy Duna House shares for the dividend after the 2022 results, and today the papers are circulating without a dividend coupon. The 21.3 percent drop seen in the share price is therefore primarily caused by the dividend cut.
Smaller fall on the continent’s stock markets
As in the past few days, the day started with a search for direction on the European stock exchanges, the DAX and CAC fell by 0.1 percent, while the FTSE 100 stagnated in trading. Meanwhile, Spain’s leading stock index is also down a few points from yesterday’s closing value, and the Milan stock market fell 0.3 percent.
OTP is at a level not seen since last April
The Hungarian stock market significantly outperformed yesterday in Europe, this was mainly due to the fact that the OTP exchange rate rose sharply in the afternoon and the bank paper ended up with a gain of more than 3.2 percent.
This is interesting from the point of view that, on the one hand, there was no specific news from the bank, and the regional bank shares did not perform particularly well yesterday, however, it is worth noting that the bank bought a large amount of its own shares in recent days, which could have supported the exchange rate even yesterday (we have not yet received information about this on the website of the Budapest Stock Exchange), and in addition the listing broke through important resistances, which also helped the rise, moreover, closing above HUF 11,500 was a positive sign for the future.
And today, the rise continued in the first few minutes, after an increase of more than half a percent, the quotation was also at HUF 11,590.
OTP reached a level not seen since last April.
OTP shares are traded with particularly high turnover.
There may be a cautious rise in European markets
What are the current events on the stock exchanges?
- The leading American stock indexes closed yesterday with an increase, the Dow Jones ended up 0.5 percent, the S&P 500 rose 0.6 percent, while the Nasdaq rose 1.3 percent.
- The Asian stock markets are showing a positive mood this morning, the Nikkei is up 1.84 percent, the Hang Seng is up 0.68 percent, while the CSI 300 is down 1.06 percent.
- The European stock markets may open in a good mood, based on the future stock indices, the DAX may rise by 0.18 percent, the CAC may open with a gain of 0.21 percent, while the FTSE may rise by 0.27 percent.
- A mixed opening is expected on the American stock exchanges based on the current position of the future stock indices. The Dow Jones may fall by 0.13 percent, the S&P 500 may fall by 0.06 percent, while the Nasdaq may rise by 0.01 percent.
What can be expected on the macro front?
We do not expect any important data to be released here today, and abroad it is only worth paying attention to Chinese inflation, as the data for May was presented today – inflation in the country increased somewhat less than analysts’ expectations.
|June 5-11, 2023 macro calendar|
|June||6.||Tuesday||8:30 a.m||KSH||Retail trade||apr.|
|June||6.||Tuesday||11:30 a.m||AKK||3-month dkj auction|
|June||7.||Wednesday||8:30 a.m||MNB||International reserves||liver.|
|June||7.||Wednesday||8:30 a.m||MNB||Securities statistics||apr.|
|June||7.||Wednesday||8:30 a.m||KSH||Industry (first estimate)||apr.|
|June||8.||Thursday||8:30 a.m||KSH||Foreign trade (first estimate)||apr.|
|June||8.||Thursday||11:00 a.m||KSH||Preliminary VAT||liver.|
|June||5.||Monday||3:45 a.m||China||Caixin BMI Serv.||liver.|
|June||5.||Monday||4:00 p.m||USA||ISM BMI Serv.||liver.|
|June||5.||Monday||4:00 p.m||USA||Factory orders||apr.|
|June||6.||Tuesday||8:00 a.m||German.||Factory orders||apr.|
|June||6.||Tuesday||11:00 a.m||EU||Retail trade||apr.|
|June||7.||Wednesday||5:00 a.m||China||Foreign trade||liver.|
|June||7.||Wednesday||2:30 p.m||USA||Foreign trade||apr.|
|Source: Portfolio collection|
What has happened on the stock markets so far?
- Among the leading American, Asian, European and regional stock indexes this year, the Nasdaq index is at the top with a 32.4 percent shift, while the Hang Seng index is the driving force with a 2.4 percent fall.
- Magyar Telekom’s share performed the best among domestic blue chips this year with a 20.9 percent increase, and Richter’s paper is at the bottom of the list with a 1.6 percent increase.
- Among the most important raw materials, the price of gold has risen by 8.4 percent since the beginning of the year.
|More important instruments|
|Exchange rate||One day||1 week||1 month||This year||1 year||5 years|
|US stock indices|
|Asian stock indices|
|European stock indices|
|Regional stock indices|
|Hungarian blue chips|
|10-year US Treasury yield||3.71||-2.1%||3.0%||5.6%||-3.1%||22.6%||26.0%|
|10-year German government bond yield||2.43||-0.9%||7.2%||4.5%||-5.4%||79.0%||440.1%|
|10-year Hungarian government bond yield||7.45||-0.9%||-5.2%||-5.7%||-19.5%||1.1%||127.8%|
|Source: Refinitiv, Portfolio|
Cover image source: Getty Images