Shares headed into the lengthy vacation weekend on a quiet be aware. 

As a reminder, each the inventory and bond markets are closed Monday, June 19, in observance of the Juneteenth vacation. 

Following a busy few days that noticed extra indicators of easing inflation and a Fed pause, as we speak’s focus for many who caught round was on the newest client sentiment information.  

The College of Michigan stated early Friday that preliminary outcomes confirmed its index of client sentiment jumped to 63.9 in June from Could’s 59.2 studying. “Client sentiment lifted 8% in June, reaching its highest stage in 4 months, reflecting higher optimism as inflation eased and policymakers resolved the debt ceiling disaster,” the report stated. Nonetheless, the survey additionally indicated that “a majority of customers nonetheless anticipate tough instances within the financial system” over the following 12 months.

iRobot pops as U.Okay. clears Amazon acquisition

In single-stock information, Virgin Galactic (SPCE) jumped 16.5% after the space-travel agency stated it should begin providing industrial area flights later this month. “We’re cautiously inspired by the corporate’s progress and extra concrete timeline for its preliminary industrial launch in late June, inflicting us to boost our goal a number of,” says Susquehanna Monetary Group analyst Charles Minervino (Impartial, the equal of a Maintain). “Nonetheless, the historical past of delays retains us considerably skeptical of SPCE’s skill to ramp industrial exercise.”

Elsewhere, iRobot (IRBT) surged 21.2% on Amazon.com (AMZN, -1.3%) buyout buzz. Final August, the e-commerce big stated it should purchase the Roomba maker for roughly $1.7 billion, together with debt. As we speak, the potential merger cleared a serious regulatory hurdle when the U.Okay. Competitors and Markets Authority stated it won’t result in competitors considerations. The deal is at present being reviewed by the U.S. Federal Commerce Fee.

As for the key market indexes, the Dow Jones Industrial Common fell 0.3% to 34,299, the S&P 500 shed 0.4% to 4,409, and the Nasdaq Composite gave again 0.7% to 13,689.

All three benchmarks prolonged their weekly win streaks to a few for the Dow, 5 for the S&P 500 – its longest since November 2021  – and eight for the Nasdaq, its longest since March 2019. 

FedEx earnings, Powell testimony on deck

Trying forward, quarterly earnings reviews from logistics big FedEx (FDX) and Olive Backyard mum or dad Darden Eating places (DRI) ought to draw some consideration within the holiday-shortened week, as will Federal Reserve Chair Jerome Powell’s semi-annual testimony earlier than Congress. Powell stated final week that the subsequent Fed assembly ought to be a “stay” one, which means the central financial institution may resume rate of interest hikes when it convenes in July.

Use tech ETFs to trip market’s momentum

With only a couple weeks left within the first half, the S&P 500 and Nasdaq are poised to enter the second half on spectacular footing. (The Dow is constructive for the year-to-date, too, however up simply X%, in comparison with 15% and 31% returns, respectively, for the opposite two.) 

Whereas loads of media consideration of late has centered round the truth that the majority of those features have come on account of outsized returns from solely a handful of mega-cap tech shares, historical past exhibits that “on a long-term foundation, a small variety of shares all the time drive a lot of the market’s returns,” says Dan Burrows, senior investing author at Kiplinger.com. 

As Burrows explains in his column “What’s So Scary A few Mega-Cap Tech Bull Market?,” analysis by Hendrik Bessembinder, finance professor on the W.P. Carey Faculty of Enterprise at Arizona State College, exhibits “that if it weren’t for slender breadth, we would not actually have any returns in any respect.”

Traders trying to trip the market’s momentum can definitely goal the finest shares from the tech sector, however a lower-risk method could be to think about tech ETFs, which unfold the chance throughout dozens, if not tons of, of firms. 

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