D&D Note (4.16.2020) ~ Wild Swings Intraday With Tech Leading ~
Markets whipsawed violently between gains and losses today with Tech being the standout gainers. The Nasdaq 100 has now erased all losses for 2020. Earnings last night from semiconductor manufacturer TSM helped propel the chip stocks and ultimately the overall tech sector.
Trump outlined a 3 phased set of guidelines on a call with Governors on best way to reopen each state economy, but made it clear it was up to each Governor on when and how they reopen. This plan was the major catalyst to push markets into the green at the close with the S&P 500 closing just shy of 2800.
DOW up 0.14%
S&P 500 up 0.58% (2799.55)
NASDAQ up 1.66%
The VIX settled down -1.79% to 40.11.
The SBA loan program has been tapped out of funds and has become clear a 4th stimulus bill is needed. Many small businesses have yet to receive funds from the first come first serve program
Gilead jumps nearly 10% on news their drug Remdesivir trial is seeing positive results in helping Covid-19 patients rapidly recover in early data. But further tests and trials are still needed to ensure it fully works on a broad based basis.
New York Governor Cuomo has extended the stay at home policy another month which put downward pressure on the market in early trading.
Streaming service Roku was a clear winner on the day rising 13.35%.
Amazon continues to create new all time highs closing at $2,407.98 and is one of the biggest winners in the new normal the world is finding itself in.
Boeing is resuming production next week in Washington and the stock surged 9% in after hours trading but is still down 58% for the year.
Bank stocks continue to be under pressure while the sector moves through earnings this week. JPM has now fallen 4 straight days and D&D is looking to add to our position in tomorrows session.
~ Dave James / Principal Trader and Market Strategist