Market 06/03: GameStop stirs up the market - NYSE continues to glitch

ISM Manufacturing PMI contracts - Production, orders drop simultaneously

• ISM Manufacturing PMI index for May drops to 48.7, lowest in 3 months (< estimate 49.6, previous 49.2).

• New orders drop sharply to 45.4 - largest drop since June 2022.

• Production drops to 50.2.

• Prices paid drop to 57. → Manufacturers still struggling with input costs.

• Employment factor rises to 51.1.

• FYI: Employment is the only factor that increased strongly in May PMI -- other factors all worsened.

Berkshire Hathaway drops 99.97% due to NYSE technical glitch

• Warren Buffett's Berkshire Hathaway (BRK.A) stock halted after dropping 99.97% due to technical glitch -- suspected due to GameStop influence (details below).

  

  • Stocks of many other companies also halted, exact number affected unclear.

  • The halts did not significantly impact the overall market.

• NYSE says the issue has been resolved, Berkshire Hathaway (BRK.A) resumes normal trading.

Atlanta FED cuts Q2 GDP growth forecast

• Forecast cut to 1.8% from 4.2% a month ago

Stocks GameStop surges thanks to massive call options volume

• Memecoin and GameStop stocks surge after Roaring Kitty (Keith Gill) discloses massive call options purchase, expiring 06/21, worth over 210 million USD.

• GameStop surges nearly 100% in early morning trading session.

FYI: Statistics show the market often breaks (disrupts) when GME surges:

• 01/28/2021: After the meme stock surge began, brokers (like Robinhood) temporarily restricted trading to manage risk, causing market disruption.

• 05/14/2024: GameStop and AMC halted trading a total of 38 times in 1 day as the price surge intensified.

• 06/02/2024: Robinhood suspends overnight trading with GameStop due to volatility.

• 06/03/2024: NYSE technical glitch causes many stocks worth over 100 billion USD to drop more than 99% - coinciding with GameStop price surge.

Crypto market: NOT triples at the end of the week

1. NOT triples at the end of the week, volume surges to nearly 4.6 billion USD (Only behind BTC, ETH & USDT).

2. US Senator Ted Cruz buys 3 mining rigs, declares starting to mine Bitcoin.

3. Australia to be the next country to launch first Spot Bitcoin ETF from Monochrome company (IBTC).

   • The fund will start trading tomorrow.

Events this week:

1. ISM Manufacturing PMI - Monday

2. JOLTS Job Openings - Tuesday

3. ADP Nonfarm Employment - Wednesday

4. ISM Non-Manufacturing PMI - Wednesday

5. S&P Global Services PMI May - Wednesday

6. May Jobs Report - Friday

Earnings reports from some companies:

Some other news:

1. Boeing continues delivering planes to China. China may need over 8,500 civilian aircraft and services worth 550 billion USD.

2. April construction spending decreases -0.1% MoM (forecast +0.2%, previous -0.2%) due to non-residential and public construction decline

3. S&P Global Ratings downgrades France's credit rating due to widening fiscal deficit.