D&D Note (5.15.2020) ~ Oil Rally Lifts Stocks Off Lows ~
Equity markets opened the day gapping down into the red, however midday Oil began to rally which then pulled stocks off their lows for the day.
The rally in Oil has nearly pulled the futures contracts out of contango.
In the final minutes of trading we saw an uplift from flat on the day to rally to highs at the close.
DOW up 0.25%
S&P 500 up 0.39% (2863.70)
NASDAQ up 0.79%
VIX down -2.21% to 31.89 after rising midday.
Oil up 7.58% to $29.65 a barrel.
FED slows Treasury buying to $6 billion a day down from $7 billion.
The Cannabis space got a lift today on the back of Aurora Cannabis Q3 results which propelled ACB to rally 70% today and pulled Canopy Growth CGC up over 14%.
GDP forecast by the Atlanta Fed shows we could decline 42% in the 2nd quarter.
Retail Sales in the US fell a record 16.4% in April which was much worse than the predicted 12.3%.
Democrats pushed the $3 trillion stimulus bill through the House although Senate Republicans and the White House have said they will oppose the bill.
Global Virus cases: 4.5 million+
Global Virus deaths: 305,395+
US Virus cases: 1.4 million+
US Virus deaths: 86,744+
~ Dave James / Principal Trader and Market Strategist