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Cargo ships dock at a berth to load and unload containers at the container terminal in Lianyungang Port, East China’s Jiangsu province, June 7, 2023.
Wang Chun | CFOTO | Future Publishing via Getty Images
This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
- China’s exports in May plunged 7.5% year over year to $283.5 billion. Economists were only expecting a 0.4% drop — already a marked decline from April’s 8.5% growth. May’s fall was so steep that export volumes were lower than those at the start of the year, after accounting for seasonality and changes in prices.
- Australia’s first-quarter gross domestic product rose 0.2% quarter on quarter, lower than the 0.3% economists expected. On a year-over-year basis, the country’s economy grew 2.3%, also lower than the 2.4% forecast. That’s the slowest pace of growth since September 2021.
The bottom line
Despite stumbles in some big-name stocks yesterday, U.S. markets managed to climb as the uncertainty of previous weeks dissipated.
Apple shares dipped 0.2% as investors digested information on the technology giant’s new mixed reality headset. While that’s a tiny loss in the grand scheme of things, it’s the first time since 2016 the technology giant’s shares fell a day after its Worldwide Developers Conference, reflecting investors’ uncertainty over the $3,499 Vision Pro’s appeal.
Still, analysts from firms like Goldman Sachs and JPMorgan remain optimistic about Apple. “Apple has proven in the past that consumer engagement can deliver willingness to pay premium pricing,” JPMorgan analyst Samik Chatterjee said.
Elsewhere, Boeing shares edged down 0.7% after the company said it would delay deliveries of its 787 Dreamliner planes because of a new defect, while Coinbase plummeted double digits.
Nevertheless, investors weren’t fazed. The CBOE Volatility Index, a measure of investors’ 30-day expectations and typically seen as Wall Street’s fear gauge, dropped to 13.96 yesterday. (Lower numbers signal more confidence and less volatility.) That’s the first time it’s closed below 14 since February 2020 — right before the pandemic hit everyone.
Major indexes had a positive day too. The S&P 500 rose 0.24% to give its highest close since August 2022 — and BMO Capital Markets thinks the broad-based index could surge further and break the 4,500 barrier. The Nasdaq Composite added 0.36% to hit a high for the year. The Dow Jones Industrial Average was flat.
It should be noted, however, that trading volume yesterday was lower than average. Investors are taking a breather from the frenzied tech rally of last week. That’s not a bad idea, considering the upcoming Fed meeting next week has the potential to upend interest rate expectations all over again, despite signs — like China’s disappointing export figures and Australia’s slowing growth — that the global economy is starting to slow down.
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