US stocks end in a mixed note

Dow lagged as financials and consumer-staples sectors falter

US stocks ended Tuesday, 05 June 2018 on slightly higher note, with the S&P 500 and Nasdaq ending in the green but the Dow lagged, closing lower by 0.1%. The major averages kept within pretty narrow ranges on Tuesday due to a lack of market-moving news. The Nasdaq Composite Index registered its second record close in a row on Tuesday on the back of a rally in the shares of technology and internet giants Netflix and Apple underscoring a resurgence in the sector that has been among the market's more influential. However, the Dow lagged as the stocks of slumping financials and consumer-staples weighed on the blue-chip gauge.

The Dow Jones Industrial Average ended down 13.71 points, or less than 0.1%, to 24,799.98, with component Goldman Sachs Group delivering the stiffest headwind for the price-weighted benchmark as a retreat in government bond yields exacted a toll on banks and other financial companies that benefit from rising rates. Meanwhile, the S&P 500 index rose 1.92 points, or less than 0.1%, at 2,748.79. The Nasdaq Composite Index advanced 31.40 points, or 0.4%, at 7,637.86, marking a second record close and the third consecutive advance for the tech-laden equity gauge.

The market's gains were fueled by the technology sector, given the advance for the Nasdaq, driven by some of the group's largest and most dominant companies, including Apple which saw its shares score back-to-back records amid optimism over the iPhone maker's outlook following details from its software-focused Worldwide Developers Conference. A rise for Twitter Ishares, which were expected to be included in the S&P 500 index, further underscored bullish sentiment for the technology and internet segment.

Twitter shares jumped 5.1% after S&P Dow Jones Indices announced the microblogging platform's stock would join the S&P 500 index. Shares of Apple rose 0.8%, marking a fresh record as the Cupertino, Calif.-based tech giant announced new augmented-reality development tools and software upgrades for all its products, along with a new Apple Watch at the company's developers' conference.

Tuesday's modest gains also come as Wall Street looks to regroup after recent upheaval triggered by political turmoil in Italy. Newly installed Prime Minister Giuseppe Conte on Tuesday won a vote of confidence in parliament but ushered in a fresh wave of angst in his maiden speech, underlining his antiestablishment party's hopes to cut corporate and individual taxes, putting the government at odds with other members of the eurozone.

The benchmark ICE U.S. Dollar Index, eased back from earlier gains to trade 0.2% lower at 93.828, while the yield on the benchmark 10-year Treasury note slipped 2.3 basis points to 2.912%, a supportive factor for commodities.

Data last week showed that the U.S. created 223,000 new jobs in May, pushing unemployment down to an 18-year low of 3.8%. That news reinforced expectations the Fed will raise interest rates at least two more times in 2018 following its March rate increase, possibly as soon as this month.

Rising real interest rates impact the opportunity costs of holding gold because the metal provides no yield, and entices investors to rotate into riskier assets like stocks. Higher rates may also boost the value of the dollar, which usually moves in the opposite direction of the commodity price.

On the economic front on Tuesday, the Institute for Supply Management said its survey of businesses, excluding manufacturing, rose to 58.6 last month from 58.8 in April. The Markit services purchasing managers index rose to 56.8 in May from 55.7.

Bullion prices settled higher at Comex on Tuesday, 05 June 2018. Gold futures settled higher on Tuesday for the first time in three sessions, to reclaim $1,300-an-ounce level as the U.S. dollar stronger turned lower for the week, helping the precious metal recoup some investment interest.

August gold tacked on $4.90, or 0.4%, to settle at $1,302.20 an ounce after falling in each of the last two sessions. In other metals trading, July silver added 0.7% at $16.543 an ounce.

Crude oil prices finished higher on Tuesday, 05 June 2018 recouping some lost ground after posting three straight sessions of declines as traders looked ahead to an expected decision by major producers to increase their crude output.

On the New York Mercantile Exchange, however, July West Texas Intermediate crude tacked on 77 cents, or 1.2%, to settle at $65.52 a barrel. August Brent crude, the global oil benchmark, climbed by 9 cents, or 0.1%, to end at $75.38 a barrel on ICE Futures Europe. Both benchmarks had posted declines in each of the last three sessions.

Looking ahead, investors will receive on Wednesday the April Trade Balance (consensus -$48.8 billion), the revised readings for first quarter Productivity (consensus 0.6%) and Unit Labor Costs (consensus 2.8%), and the weekly MBA Mortgage Applications Index.

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