社区

* S&P 500, Dow slip; Nasdaq green; smallcaps, transports weak

* Energy weakest major S&P sector; tech leads gainers

* Euro STOXX 600 index down ~0.6%

* Dollar, gold, bitcoin higher; crude down

* U.S. 10-Year Treasury yield down for 6th day, now ~1.35%

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

PEDAL OFF THE MEDAL: U.S. SERVICES SECTOR BRAKES FOR WORKERS (1105 EDT/1505 GMT) Data released on Tuesday showed the U.S. services sector eased off the accelerator in June, slowing down for the dual speed bumps of scarcity in workers and supplies.

The Institute for Supply Management's $(ISM)$ non-manufacturing purchasing managers' index $(PMI.UK)$ fell more than expected last month, sliding 3.9 points from an all-time high to a reading of 60.1, bigger than the more modest drop analysts expected.

A PMI number above 50 signifies expanded activity from the previous month.

Customer-facing services, which bore the brunt of social distancing restrictions at the outset of the pandemic, are currently caught between booming demand and an inability to fully meet it, with freshly jabbed consumers taking advantage of the reopening economy amid a sea of help wanted signs.

ISM's employment component, in fact, plunged 6 points into contraction territory and backlog of orders ticked higher.

"The rate of expansion in the services sector remains strong, despite the slight pullback in the rate of growth from the previous month's all-time high," writes Anthony Nieves, chair of ISM's Services Business Survey Committee.

"Challenges with materials shortages, inflation, logistics and employment resources continue to be an impediment to business conditions."

The survey's respondents agree:

"Some locations cannot open for business or (have) limited hours, as we cannot staff the restaurant to meet consumer demand," (accommodation/food).

"Labor market remains tight, and wages have risen at an unprecedented rate. We are expecting a long-term effect on pricing of services," (transportation/warehousing).

"Severe supply chain disruptions and inflation are continuing in the marketplace, in all sectors," (arts/entertainment/recreation).

Global financial information firm IHS Markit also released its final take on June services PMI , showing a reading of 64.6, down from 70.4 in May.

ISM and Markit PMI indexes differ in the weight they apply to various subcomponents, such as new orders, employment, and others.

The graphic below shows how the two indexes have differed in recent years.

Investors were in a selling mood in late morning trading, with a broad sell-off hitting economically sensitive cyclicals, transports and smallcaps the hardest.

(Stephen Culp)

*****

WALL STREET MIXED AS LOW YIELDS SPUR GROWTH STOCKS (1011 EDT/1411 GMT)

The broad market opened slightly lower on Monday, with the S&P 500 and the Dow Industrials trading in the red, but growth stocks and the Nasdaq rising in a trend that gained force late last week as worries about inflation dissipated.

The Russell 1000 Growth index is up 0.4%, while the Russell 1000 Value index is falling around 0.8%.

A majority of major S&P 500 sectors are red with energy

the weakest group. Tech leads gainers.

Oil prices hit multi-year highs after OPEC+ producers clashed over plans to raise supply to meet rising global demand. However, NYMEX crude futures are now down on the day.

Gold prices are rising on a benign outlook for inflation, as the yield on the U.S. 10-year Treasury note

falling for a 6th straight day to around 1.36%.

Here is an early trade snapshot:

(Herbert Lash)

*****

S&P 500 SIZZLES, SERVES UP A RARE STREAK (0900 EDT/1300 GMT)

The S&P 500 has been running hot. In fact, at just over the half-way mark for 2021, the benchmark index has already registered 36 record closing highs this year, putting it on pace for the most record closes since 62 in 2017.

Additionally, the SPX has notched 7-straight record daily closes. This is its longest run on consecutive record highs since an 8-day streak in June 1997.

A run of 8-straight record high closes appears fairly rare, but, of note, there certainly seems to be something about the June/July time frame. Using Refinitiv data back to early 1928, the SPX has only seen 8-straight record-high closes two other times beside June 1997. One was in September 1995, and the other was in June/July 1964.

The most consecutive record-high daily closes the SPX has seen going back to 1928, were two 9-day streaks: one in June 1955 and one in June/July 1929.

Along with its rare streak, the SPX's daily RSI is now the most overbought its been since mid-April of this year and early-September of last year:

From those points, the SPX either immediately declined, or struggled. It topped on Sept. 2, and slid about 10% on a closing basis over the next 14 trading days. From the April reading, it managed to extend only around 1% over the next 15 trading days, before then declining around 4% over the next 3 trading days.

(Terence Gabriel)

*****

FOR MONDAY'S LIVE MARKETS' POSTS PRIOR TO 0900 EDT/1300 GMT - CLICK HERE:

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ SPX07062021 Earlytrade07062021 ISM services PMI Markit v ISM

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

(Terence Gabriel is a Reuters market analyst. The views expressed are his own)