Summary
- The annual Russell Reconstitution has caused many small-cap stocks to surge, and institutional buying pressure is anticipated to filter down from the eight largest NASDAQ companies that have been hogging most of the money.
- Rising crude oil output in the Americas, plus Russia circumventing sanctions by selling 80% of its heavy sour crude oil to China and India, is one reason why oil speculators have temporarily succeeded in suppressing crude oil prices.
- ISM announced that its non-manufacturing (service) index declined to 50.3 in May, down from 51.9 in April and well below economists’ consensus expectation of 51.8. The price component declined to 56.2 in May, down from 59.6 in April, which is a sign that service inflation is cooling off.