US equities closed June with stellar gains, the S&P 500 closed its best first half in 20 years and the Dow Jones rallied more than 8% this month, its biggest June gains since the 1940's.
The Nasdaq also joined the party, closing June up 7.4%. However, the markets stalled into the last trading week of June, awaiting news from the G20 meeting between US President Trump and Chinese leader XI Ping and now that the outcome of the talks is out, meaning more trade talks over a friendlier environment short term, i.e. no additional escalation in tariffs.
Yet, the clarity the markets are expecting, or the total withdraw off bilateral tariffs, that’s probably not happening near term. Financial stocks moved higher Friday on approval to boost dividends and after passing the Fed annual stress test, JPM shares overperformed with a 2% gain while Goldman announced a 50% hike in quarterly dividends.
Now is remains to be seen how the markets are going to price in the outcome of the G20 talks, the upcoming Friday job report and more important, the next Fed meeting, less than 3 weeks away.
All that when the earnings season for the second quarter is around the corner and analyst are looking at record numbers of S&P 500 companies issuing negative EPS guidance for Q2 since 2006 – according to FactSet.
So, we are looking at the markets at all-time highs, after a stellar month, going into positive Fed versus trade war lack of clarity versus a trouble some earnings environment.
On the IPO scene it seems like the run up in "Beyond Meat" has finally come to a holt and the scene is now open to other contestants, Uber shares rallied this week to all time highs while the high-profile IPO WORK stumbled out its first 7 days of trading.
Overall, more than 50 IPO's raised more than $25 billion, the most in 5 years and there are more than 60 companies looking to raise $11 billion near term. Commodities have gone thru a roller-coaster week as well, Gold prices skyrocketed to 6 years highs of $1439 this week yet closed at $1408, up $100 this month, after the runaway from the dollar into safe heavens gave up.
Oil closed the week up $6 on lower US stockpiles that's due to record US exporting levels, trying to make up for the lack of Iranian oil and OPEC's decision to stay put with production levels near term.