Weekly Market Outlook (June 5th)
U.S. stocks, which ended last week at an all-time high, started Monday on a mixed note after several Arab countries announced that they would cut ties with Qatar for allegedly supporting terrorist groups in the Middle East. This weekend’s terrorist attacks in London, however, don’t appear to be weighing significantly on either stock or oil markets for now.
At last check, the Dow Jones Industrial Average edged up 5.11, or 0.02 percent, to 21,211,40 while the S&P 500 was down 2.02, or 0.08 percent to 2,437.05 and the tech-heavy Nasdaq dropped 6.21, or 0.1 percent, to 6299.56. Oil prices traded down on expectations that the spat with Qatar might hurt OPEC’s plans to cut production.
Looking ahead this week, investors will have plenty of news to digest.
Former FBI Director James Comey is due to testify before Congress Thursday regarding whether President Trump attempted to obstruct his investigation into National Security Advisor Michael Flynn’s ties to Russia. Trump reportedly called Flynn a “good guy” and asked him to “see your way clear to letting this go.” Both Comey and Flynn were fired by Trump, who has repeatedly denied any collusion between his campaign and Russia.
The U.K. Parliamentary elections are also going to be held Thursday. According to U.K. media reports, the opposition Labour party has narrowed the double-digit lead that the Conservative Prime Minister Theresa May had enjoyed in the polls. Should May lose seats in Pariliament, it will make it more difficult for her to manage controversial issues such as the U.K.’s exit from the European Union.Campaigning was put on hold today because of the terrorist attacks that killed 7 and wounded 48.
Among the more notable earnings expected this week are chipmaker Ambarella (NASDAQ: AMBA), whose customers include GoPro (NASDAQ:GPRO) Alphabet’s (NASDAQ:GOOGL) and Nikon, which is due to report results Monday as its Tailored Brands (NYSE: TLRD), parent of the Jos. A Bank men’s clothing chain.JM Smucker (SJM), whose products include jams, coffee and pet food, is due to report Thursday as is ski resort operator Vail Resorts (NYSE:MTN).