D&D Note (5.6.2020) ~ Trade War Fears Bring Markets Down ~
Stocks traded mixed from losses to gains throughout the day expect for the NASDAQ which was up on the day led by Big Cap Tech.
In the last hour of trading all three major indices took a leg lower after the President continued his threat of a renewed Trade War with China. This pushed both the DOW and S&P 500 into the red and paired the gains on the NASDAQ.
CEO Larry Fink of Blackrock today gave a bleak outlook for corporate America. He warned of mass bankruptcies, continued airline troubles, a more cautious American consumer, and an increase in the corporate tax rate possibly as high as 29% to pay for the government stimulus.
DOW down -0.10%
S&P 500 down -0.70% (2848.42)
NASDAQ up 0.51%
The VIX up 1.52% to 34.12
Oil down -1.91% to 24.09 a barrel.
California reports its largest one-day increase in Coronavirus cases with 2,603 new infections and deaths spiked to 95.
Texas saw an increase of deaths by 4.6% to a total of 948 which is biggest daily jump in deaths in a week, and total cases increased 3.2% to 34,422.
Kentucky also had its biggest daily increase in Covid-19 cases rising 11% to 5,822.
~ Dave James / Principal Trader and Market Strategist