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Wealth Daily 27 May 2022

WEALTH DAILY 2022-05-27
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On Thu, US equities extended their rebound from the lowest levels in over a year as solid outlooks from retailers bolstered confidence in the economy despite supply-chain snags and inflationary pressures. 

The Dow Jones Industrial Average gained 516.91 pts or 1.61% to close at 32637.19. The broader S&P 500 index rose 1.99%. The tech-heavy Nasdaq Composite advanced 2.68%. The small cap Russell 2000 gained 2.17%. 

Megacap tech stocks rose on Thu, including Apple (AAPL US, +2.32%), Microsoft (MSFT US, +1.29%), Amazon (AMZN US, +4.03%), Alphabet (GOOGL US, +1.88%), Nvidia (NVDA US, +5.16%), and Meta Platforms (FB US, +4.24%). 

Consumer shares led gains in the S&P 500 as Macy’s (M US, +19.31%) lifted its profit forecast, while deep-discount stores Dollar Tree (DLTR US, +21.87%) and Dollar General (DG US, +13.71%) notched their biggest gains on record amid stronger sales projections. 

Broadcom (AVGO US, +3.58%) will buy Vmware (VMW US, +3.17%) for about $61b in a cash-or-stock deal which is expected to close in Broadcom's FY2023. VMware holders can either choose $142.50/share in cash or 0.2520 shares of Broadcom stock for each VMware share. 

Apple (AAPL US, +2.32%) is planning to keep its iPhone production roughly flat in 2022, a conservative stance as the year turns increasingly challenging for the smartphone industry. 

The yield on the 10-year Treasury note notched up 0.18 basis points (bps) to 2.7469%, while the yield on the 2-year Treasuries fell 1.61bps to 2.4758%. 

The iShares iBoxx High Yield Corporate Bond ETF (HYG US) rose 1.39%. 

The front-month Brent and WTI futures closed up $3.37 at US$117.4/bbl and $3.76 at US$114.09/bbl respectively. 

The ICE dollar index (DXY), which measures the strength of the greenback against a basket of currencies, fell 0.22% to 101.829. 

The most actively traded US gold futures (Jun) contracts settled up $1.30, or 0.07%, at US$1847.6oz. July silver, which is the most actively traded silver futures, rose $0.095, or 0.43%, to end at US$21.965/oz. 

European equity markets finished higher on Thu. The UK FTSE gained 0.56%, France's CAC 40 rose 1.78%, while the German DAX advanced 1.59%.

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