Yahoo Finance Stock Market News for June 4, 2024
Market News
Wall Street ended mixed on Monday, with the S&P 500 and the Nasdaq ending in the positive territory and the Dow finishing in the red. The cyclical sectors, including energy, weighed on the broader market due to a decline in crude oil prices.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 0.3% or 115.29 points to close at 38,571.03. 16 components of the 30-stock index ended in the negative territory, while 13 were in the positive zone and one remained unchanged.
The tech-heavy Nasdaq advanced 93.66 points or 0.6% to close at 16,828.67.
The S&P 500 gained 0.1% to finish at 5,283.40. However, three out of the 11 broad sectors of the broad-market index ended in the positive territory, while eight were in the negative zone. The Health Care Sector SPDR (XLV), the Technology Select Sector SPDR (XLK), and the Communication Services Select Sector SPDR (XLC) surged by 0.7%,0.3%, and 0.4%, respectively. On the other hand, the Energy Select Sector SPDR (XLE) tumbled 2.7%.
The fear-gauge CBOE Volatility Index (VIX) was up 1.5% to 13.11. On Monday, 11.5 billion shares were traded, lower than the last 20-session average of 12.6 billion. Advancers outnumbered decliners on the NYSE by a 1.03-to-1 ratio. On the Nasdaq, a 1.01-to-1 ratio favored advancing issues.
OPEC+ Decision Sparks Sharp Decline in U.S. Crude Oil Prices
U.S. crude oil prices experienced a sharp decline on Monday after a group of OPEC+ members decided to gradually ease up on production cuts implemented last year to stabilize oil prices.
The coalition of eight oil producers, which includes Saudi Arabia, Russia and Iraq, announced that they will start producing more oil in October. They intend to increase output by more than 500,000 barrels per day by December and aim for 1.8 million barrels per day by June 2025.
This announcement caused ripples in the oil market, leading to a drop in prices. The decision to increase production will lead to an oversupply of oil in the market, sparking concerns among investors about a surplus, which could undermine oil prices. As a result, Brent crude plummeted over 3%, falling below $80 for the first time in nearly four months. Similarly, West Texas Intermediate futures fell by more than 3%, slipping below $75 per barrel.
Consequently, shares of oil companies such as Halliburton HAL and Baker Hughes BKR fell 5.3% and 4%, respectively. Both carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
The Institute of Supply Management (ISM) reported that the manufacturing index came in at 48.7% in May, less than the 49.2% reported in the previous month. The consensus estimate was 49.6%. Notably, any reading below 50 indicates a contraction in manufacturing activities.
Construction spending declined 0.1% in April, in contrast to the consensus estimate of an increase of 0.2%. Construction spending dropped 0.2% in March.
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Halliburton Company (HAL) : Free Stock Analysis Report
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