D&D Note (5.7.2020) ~ All Sectors Rally But Fade Into Close ~
Stocks went back to classic Risk On today with a broad rally lifting all sectors into the green. The best performing sectors being: Materials, Energy, Financials, and Tech. It’s a positive sign to see the Financials rally and markets just not being propped up by Mega Cap Tech. In late trading the Consumer Staples sector did turn negative followed at the close by Healthcare just dipping into the red.
The S&P 500 intraday wasn’t able to break through and maintain above 2900. We did hit 2901.92 for intraday day high but pulled off high immediately and made lower lows rest of the session with the rally fading into the close.
The tech heavy NASDAQ turned positive for the year putting into question have tech stocks ran too far too fast?
DOW up 0.89%
S&P 500 up 1.15% (2881.19)
NASDAQ up 1.41%
VIX down -6.89% to 31.77
Oil rallied on the day from Saudi price hike but reversed midday due to Glut concerns to close down -3.79% to 23.08 a barrel.
The 2-YR Treasury Note hit a record low of 12.5 basis points.
California has reported a budget deficit of $54 Billion from the effects of the Shelter-In-Place order.
Facebook is said to announce they will allow most employees to continue to work from home until the end of 2020.
A personal valet of Trump tests positive for Covid-19 and did not wear a mask around the President. While both the POTUS and VP have tested negative the White House declined to say if both would self quarantine.
Elon Musk makes news again today calling the current Covid-19 pandemic a trial run for a future pandemic with a higher mortality rate. The WHO in March said the current Coronavirus has a global 3.4% mortality rate.
Globally there have been over 3.8 million cases and over 266,000 deaths.
The United States has had over 1,223,000 cases and over 74,000 deaths. There have been over 7.7 million people tested in the U.S.
~ Dave James / Principal Trader and Market Strategist