Stocks experienced “sector rotation” today as money moved out of hot tech leaders like Amazon and Faceplant while rolling into healthcare, banks and energy. This set up a divergence between the indexes with the Dow higher while the NASDAQ and S&P 500 were lower. At the close the Dow gained 24 points to 21,207 on heavy trade while the NASDAQ lost 1.8%. For the week the Dow gained about a tenth of a point.
Britain’s PM May suffered an election setback as her gubment’s snap election allowed the opposition labor party to eliminate the conservative majority which will make it harder to govern and could put the entire Brexit effort at risk. European markets were higher on the news and the British pound fell against the US dollar.
Meanwhile in the Middle East we have a changing landscape as Saudi Arabia is mad at Qatar while ISIS is mad at Iran and Iran is mad at Saudi Arabia. In addition to all this, the Kurds in Iraq have announced they are holding an independence referendum on September 25th which could set the stage for them to break away from Iraq and form their own country. Maybe they will call this the “Kurdexit”. It’s not every day that I get to invent a new word or in this case a….”Kurd Word”. Haha
US economic activity continues to hum along as the ISM service index came in at a reading of 56.9 in May. While this is slightly lower than April’s reading, 17 of 18 industries reported growth in May. The employment index rose in May matching its largest monthly increase since the 1990’s. The reading indicates that labor market activity remains positive.
There is a Boy Scout hike this weekend to Peak-a-boo Lake up near Darrington. It looks like 14 scouts will hike 5 miles to the lake all while being under the watchful eye of ruffed grouse who are native to this area and who will be in rut. Last time we were here one of them attacked our car. How you could mistake a pathfinder for a large female ruffed grouse is beyond me.