Apple Outshines Nvidia, Mag 7 Peers | Wall Street Today

Moomoo Recap US wrote a column · Jun 7 15:54

Apple Outshines Nvidia, Mag 7 Peers | Wall Street Today

by Luzi Ann Santos | moomoo News

A sea of red engulfed the U.S. stock market Friday as non-farm payrolls data signaled continued strength in the labor market, weakening the case for the Federal Reserve to start cutting interest rates.

Decliners outnumbered gainers about 2.5-1, with utilities, materials, real estate leading losses. Financials advanced. The tech-heavy $Nasdaq Composite Index (.IXIC.US)$ declined 0.2% to 17133.126, while the $S&P 500 Index (.SPX.US)$ slipped 0.1% to 5346.99. The $Dow Jones Industrial Average (.DJI.US)$ lost 0.2% to 38798.99.

$Apple (AAPL.US)$, which lost its place as the second-most valuable company to $NVIDIA (NVDA.US)$ earlier this week, regained that title just a day later and continued to maintain its dominance. Apple ended the day 1.2% higher, the only member of the Magnificent Seven to post a gain Friday.

MACRO

Payrolls gained 272,000 in May, higher than the average monthly increase of 232,000 over the prior 12 months, the Bureau of Labor Statistics said in a report Friday morning. That's higher than the 190,000 additional jobs expected by economists polled by Wall Street Journal.

Average hourly earnings for all employees on private non-farm payrolls rose 0.4% to $34.91. Wage pressures, spurred by higher demand for labor has helped fan inflation, prompting the Fed to start raising interest rates in early 2022. While rates have stalled at a range of 5.25% to 5.55% since August, they remain at the highest since 2007.

SECTORS

The $U.S. 10-Year Treasury Notes Yield (US10Y.BD)$ and the $U.S. 2-Year Treasury Notes Yield (US2Y.BD)$ rose as investors pared back bets of rate cuts.

The odds of a quarter percentage point decline in interest rates by September fell to 46.7%, from 55.4% a day earlier, the CME FedWatch tool showed.

Gold futures fell 3.5% as prospects that rates will stay high for longer curbed the investment appeal of precious metals that don't provide holders with any income apart from price appreciation. Silver, which is twice as volatile as gold, lived up to that reputation, tumbling 6.6%.

Crude oil futures declined amid a wider sell-off in risk assets.

MOVERS

$GameStop (GME.US)$ shares tanked after the company reported disappointing quarterly financial results Friday morning and announced that it's selling as much as 75 million shares, diluting the stake of existing shareholders.

Not even the glowing endorsement from meme stock trader Keith Gill, known as Roaring Kitty in his return to YouTube curbed the share price slump.

$Apple (AAPL.US)$ shares gained ahead of the Worldwide Developers Conference (WWDC) as analysts await the company's update and whether it will unveil its progress in the artificial intelligence race. The iPhone maker outperformed its Magnificent Seven peers, with $Alphabet-A (GOOGL.US)$, $Meta Platforms (META.US)$, $Amazon (AMZN.US)$, Tesla, $Microsoft (MSFT.US)$ and $NVIDIA (NVDA.US)$ all ending the day down.

$Tesla (TSLA.US)$ shares slipped after the company reportedly started offering below-market financing rates on certain Model 3 sedans in the U.S., just like it did in May for qualifying Model Y purchases. The new incentive signals a tougher demand environment for the electric vehicle maker.

$Vail Resorts (MTN.US)$ shares tanked after JPMorgan downgraded the stock to underweight from neutral, and lowered its price target a day after the company reported fiscal third quarter earnings and revenue that trailed the analyst's estimate. Stifel, Mizuho Securities, Deutsche Bank and Bank of America Securities also cut their price targets on the stock.

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