[Chart courtesy of MarketWatch.com]

1. Moving the markets

The major indexes continued to vacillate around record territory, as the last day of the month and quarter ended. The Dow took the lead with the S&P 500 lagging and the Nasdaq sinking slightly into the red.  

For June, the S&P 500 managed to eke out again of some 2.2%, despite having dropped into the red during mid-month, yet in the end, the index closed the quarter at a new high. At the same time, it recorded its fifth positive month in a row.

It’s been interesting to observe how traders and investors have simply shrugged off the ever-present and seemingly worsening inflation numbers. All based on the assumption that the economic comeback will proceed as hoped, while the Fed is assumed to continue throwing assists via its loose monetary policies.

So, what usually happens after the markets close out a good first half of the year? CNBC added this comment:

Good first halves for the market usually bode well for the rest of the year. Whenever there has been a double-digit gain in the first half, the Dow and S&P 500 have never ended that year with an annual decline, according to Refinitiv data going back to 1950.

On the economic front, Pending Home Sales picked up some pace and surged in May. However, Mortgage Applications crashed, as we witnessed two opposing forces at work, namely rising Homebuilder Confidence and collapsing Homebuyer Confidence, a battle that most likely will be won by the Homebuyers.

“Growth” and “Value” have been in a skirmish all year with “Value” leading but “Growth” catching up, as Bloomberg’s chart shows.

Bond yields offered a mixed picture for this quarter, as the 30-year yield took a dive while the 2-year yield spiked. The US Dollar ended lower for the quarter, despite showing a strong rebound in June.

The question in my mind when looking to the upcoming 3^rd quarter is this one: “Will worsening inflation finally force the Fed’s hand to raise interest rates?

Only time will tell.

[Chart courtesy of MarketWatch.com]

1. Moving the markets

Despite an early morning bounce, the Dow and the S&P 500 succumbed to weakness and gave back most of their initial gains and ended essentially unchanged. The Nasdaq went the other way but managed to climb out of a hole to score a modest gain, after swinging wildly late in the session.

It appeared to be a day of rest for the indexes with low volatility keeping markets in check, despite strong readings form home prices and consumer confidence.

Added CNBC:

The market has churned out a series of record highs in recent weeks, but the gains have been relatively modest, and some strategists have pointed to weak market breadth, measured by the performance of average stocks and the number of individual names making new highs, as a potential area of concern.

Bond yields rode the rollercoaster and ended slightly down, while the US Dollar Index continued its rebound but failed to take out last week’s highs. None of this action assisted Gold, with the precious metal breaking beneath recent lows but bouncing into the close.

It was another session during which not much was gained and not much was lost.

[Chart courtesy of MarketWatch.com]

1. Moving the markets

The overall market struggled for direction except for the Nasdaq, which started the week strong and pushed the index to another all-time high.

The tech sector dominated with Facebook contributing via a 4% jump, after a US court dismissed an antitrust suit against the company.

Semiconductors also showed signs of life, while Boeing headed the wrong way, after issues with regulators could not be resolved, thereby keeping the Dow in the red throughout the session.

The S&P 500 meandered around its unchanged line all day, without making much headway, until a last hour boost pushed the index not only into the green but also into record territory.

Today, “value” got skunked and “growth” got pumped, with RPV giving back some 1.44%, as bond yields plunged after Friday’s spike, a move which totally unraveled today.    

The US Dollar Index did not go anywhere and, in combination with sinking yields helped gold to some early gains, but in the end, it turned more or less into a break even scenario.

With two more trading days to go in June, it looks likely the S&P 500 will score another winning month, despite having briefly dipped into the negative on the 18^th, a pullback which was quickly recovered.