To The Moon

1. MAJOR INDEXES RETURNS

• The $S&P 500(.SPX)$ rose for the fourth week in a row, climbing to its highest level in nearly 10 months. Each of the major U.S. indexes produced a fractional weekly gain in a mostly quiet week of trading. 

• After closing on Thursday at 4,293.9, the $S&P 500(.SPX)$ eclipsed the level needed to exit the bear market that it had been in since January 2022. The index now has entered a bull market after rising 20% since a low on October 12, 2022

• U.S. small-cap stock benchmark outperformed its large-cap peers for the second week in a row, narrowing small caps’ year-to-date underperformance gap versus large caps. The $iShares Russell 2000 ETF(IWM)$ has gained more than 5% over the past two weeks. 

• With the U.S. Federal Reserve scheduled to conclude its next meeting on Wednesday, most observers expected that the Fed would keep its key benchmark interest rate unchanged at a range of 5.00% to 5.25%, potentially breaking a string of 10 consecutive meetings in which it has lifted rates. Investors will also be watching for any indications as to whether the Fed might shift back to a rate-hiking mode at its subsequent meeting ending July 26, if it chooses to keep rates unchanged at its June session.

2. SECTORS AND STOCKS OF $S&P 500(.SPX)$

• At last week, Consumer Cyclical Sector top the performances by 2.32% with $Tesla Motors(TSLA)$ rose 14.22% and $Ford(F)$ rose over 10.9% weekly, the biggest gain from July 2022.

• The top 10 winners of $S&P 500(.SPX)$ were $Tesla Motors(TSLA)$ $Bath & Body Works Inc.(BBWI)$ $Ford(F)$ $Gap(GPS)$ $Norwegian Cruise Line(NCLH)$ $Vornado(VNO)$ $Caesars Entertainment(CZR)$ $CF Industries Holdings Inc(CF)$ $United Rentals(URI)$ $Carnival(CCL)$

4. MACRO FACTORS AND OTHER ASSETS

• Japan's comeback:Japanese stock index extending its run of year-to-date outperformance versus the benchmarks of most of the world’s major economies. Stocks have been lifted in part by the recent resilience of Japan’s economy, which grew at an annualized rate of 1.6% in this year’s first quarter.

• Low volatility:The $Cboe Volatility Index(VIX)$ sank on Friday to 13.8 just above its level before the start of the COVID-19 pandemic.Investors’ expectations of short-term U.S. stock market volatility has dropped to the lowest level since January 2020 after falling 31% from a recent high on May 24.

• Labor market cracks? Although the U.S. economy has recently continued to generate new jobs at a rapid clip, the latest weekly count of newly filed unemployment claims rose to the highest level since October 2021. Unemployment benefit applications rose to 261,000 for the period ended June 3, up from 233,000 the previous week. 

• Fixed-income checkup: Bond investors appeared to be in a wait-and-see mode ahead of a U.S. Federal Reserve meeting this week, as U.S. government bonds traded in a narrow range relative to that market’s year-to-date choppiness.

5. THE WEEK AHEAD : Jun 12-16

We’ll get an update on retail sales, as well as consumer sentiment later in the week. $Oracle(ORCL)$ , $Adobe(ADBE)$ , $Kroger(KR)$ , and $Lennar(LEN)$ , will be among the companies reporting earnings.

Monday

• Treasury budget, U.S. Department of the Treasury 

Tuesday

• Consumer Price Index, U.S. Bureau of Labor Statistics

Wednesday

• U.S. Federal Reserve Board concludes two-day policy meeting, Chair Jerome Powell holds press conference

• Producer Price Index, U.S. Bureau of Labor Statistics

Thursday

• Retail sales, U.S. Census Bureau

• Weekly unemployment claims, U.S. Department of Labor

• Industrial production and capacity utilization, U.S. Federal Reserve

• Export and import prices, U.S. Bureau of Labor Statistics

• Business inventories, U.S. Census Bureau 

Friday

• University of Michigan Index of Consumer Sentiment, preliminary result

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