[Platinum Insights] (6.5.23)

Good morning.  

Market futures are mixed this morning. U.S. stocks rallied on Friday after a labor market report showing moderating wage growth in May indicated the U.S. central bank may skip a rate hike next week, while investors welcomed a Washington deal that avoided a catastrophic debt default.  

“If you’re worried about the deficit and debt problem, this thing does nothing,” said Dennis Ippolito, a public policy professor and fiscal expert at Southern Methodist University. “What you’ve got in place is essentially Democratic spending policy and Republican tax policy, and there is nothing in the works that suggests any change to either of those,” he said.  

After the debt deal saga, it will be a relatively quiet week in the United States, with only the ISM Services PMI, factory orders, and trade data of significant importance.   

Palo Alto Networks Inc climbed 5.3% as the cybersecurity firm looks set to replace Dish Network in the S&P 500 index. Dish shares tumbled 7.8%.  

According to Ed Clissold at Ned Davis Research, the percentage of stocks outperforming the S&P 500 this year is just 24.5%. If that holds to Dec. 31 it will be the lowest in at least 50 years. And it is shrinking. The percentage of S&P 500 stocks outperforming the index on a rolling three-month basis is just 20.3%, a record low. “The AI scene could keep this narrow rally going, but ultimately, a year out, the message for the market is – either we have a substantial correction, or a broadening out needs to happen,” he said.  

WTI crude futures is trading around$73 per barrel. Gold held below $1,950 an ounce while the yield on the US 10-year Treasury note continued to rise to approach 3.75%.  

On the Platinum Channel stocks on the Horizons & <200 stock lists showed nice gains in line with the market rally. The swing trading portfolio also provided paper traders with some nice gains during the first couple days of trading in June.   

Have a great day.