D&D Note (6.2.2020) ~ Markets Continue To Rally On Reopening Economy The NASDAQ Trades Volatile ~
Investors continue to focus on the reopening of the state economies driving prices higher.
The DOW and the S&P 500 held strong rallies throughout the day while the NASDAQ traded volatile starting in red going green before falling deeper into the red, then rallying back into the green at the close of trading.
Mega Cap tech was the largest drag on the NASDAQ today led by Facebook, Netflix, Apple, Amazon, and Google.
Facebook specifically under pressure from employee backlash over policies dealing with fact checking and specifically Trumps content.
Headwinds to markets do remain in both racial unrest and the US-China tensions.
In the final 10 minutes all major indices took a leg up into the close which looks to be a short squeeze.
DOW up 1.05%
S&P 500 up 0.82% (3080.82)
NASDAQ up 0.59%
VIX down -4.92% to 26.84 (the VIX at these levels implies roughly a 1.4% daily move)
Oil up 4.12% to $36.90 a barrel.
St. Louis Fed economist Yi Wen says negative interest rates could be needed for a ‘V’ recovery. FED Chairman J. Powell has said he does not see below-zero policy rates as “an appropriate tool.”
Microsoft price target raised at Wells Fargo to $250 with overweight position seeing ‘out-sized’ cloud benefits.
PayPal price target raised at UBS to $167 with neutral position seeing ‘secular improvement.’
Tokyo issues stay-home alert after new Covid-19 cases jump.
North Carolina Gov. Roy Cooper sends letter to RNC saying it’s “very unlikely” that the Republican National Convention will be held at full-scale participation as being demanded by Trump and GOP members.
Global Virus cases: 6.33 million+
Global Virus deaths: 378,240+
US Virus cases: 1.82 million+
US Virus deaths: 106,028+
~ Dave James / Principal Trader and Market Strategist