Stock Market Holds Firm: S&P 500 Bull Market Begins With Caution Ahead Of Next Week's Key Events

Following the S&P 500 Index's recent entry into a bull market, surging over 20% since its October lows, stocks are taking a breather as investors exercise caution ahead of key upcoming macroeconomic events next week. These include Tuesday's release of May's Consumer Price Index (CPI) and the Federal Reserve's policy meeting next Wednesday.

Cues From Friday’s Trading:

All major averages traded broadly flat for the day, with small caps in the Russell 2000 index underperforming, down by 1%. Value continued to trail growth, as tech ticked higher while cyclical sectors fell. 

Friday's Trading In Major US Equity ETFs: In midday trading on Friday, the SPDR S&P 500 ETF Trust SPY was flat at $429.93 and the SPDR Dow Jones Industrial Average ETF DIA also held steady at $338.78, while the Invesco QQQ Trust QQQ ticked 0.17% higher to $353, according to Benzinga Pro data.

Eight out of the eleven S&P sectors were in the red for the session, except for the Consumer Discretionary Select Sector SPDR Fund XLY, up 0.51%, the Technology Select Sector SPDR Fund XLK, up 0.4%, and the Health Care Select Sector SPDR Fund XLV, up 0.2%.

The laggard was the Materials Select Sector SPDR Fund XLB, down 1%. 

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Stocks In Focus:

• Tesla, Inc. TSLA shares rallied over 4.3% following an agreement it struck with General Motor Corp. GM to allow the latter’s EVs to charge at its Supercharger locations. GM was up about 3.50%. Separately, Wedbush analyst Daniel Ives raised his price target for Tesla's stock from $215 to $300. 

Pureplay charging stocks declined in reaction to the Tesla-GM partnership. ChargePoint Holdings, Inc. CHPT fell over 13%.

Carvana Co. CVNA fell 12%, after rising 56% on Thursday.

• Nio, Inc. NIO had a volatile session following the release of its quarterly results, but managed to rise 1%. 
• DocuSign, Inc. DOCU fell nearly 5% despite reporting better-than-expected quarterly results.

Commodities, Bonds, Other Global Equity Markets:

Crude oil ticked 0.3% higher, with a barrel of WTI-grade crude rising to $71.20. The United States Oil Fund ETF USO was up 0.3% to $63.64 per share.  

Treasury yields rose, with the 10-year yield up by 3 basis points to 3.74% and the two-year yield up 8 basis points to 4.60%. The iShares 20+ Year Treasury Bond ETF TLT was flat for the day. 

The dollar edged higher, with the U.S. dollar index, which is tracked by the Invesco DB USD Index Bullish Fund ETF UUP, up 0.25%. The EUR/USD pair, which is tracked by the Invesco CurrecyShares Euro Currency Trust FXE, fell 0.3% to 1.0750.

European equity indices fell across the board. The iShares MSCI Eurozone ETF EZU was unchanged. 

Gold fell 0.3% to $1,960/oz. The SPDR Gold Trust GLD was 0.2% lower to $182.12. Silver was flat at $24.30, with the iShares Silver Trust SLV down 0.1% to $22.29 per share. Bitcoin BTC/USD fell 0.2% to $26,459.

Staff writer Piero Cingari updated this report midday Monday. 

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