D&D Note (6.8.2020) ~ Markets Continue Rally On Jobs Report With S&P 500 Recouping All Losses For Year ~
Last Fridays surprise jobs numbers propelled markets to close higher Friday and that momentum has carried through to today.
The S&P 500 has now recouped all of its losses on the year (opened year at 3205), but hasn’t yet reclaimed all time highs set in February before the crash.
The worry here is that those jobs that got hired back might just get laid back off once the Small Business PPP loans expire.
The other disturbing trend from that jobs report is that African American unemployment is still spiking showing the inequality in the recent hiring back of America’s workforce.
Yet another worry is this possible head fake jobs report will stall or deny a new round of stimulus from Congress.
D&D’s upside target on the S&P 500 is 3250 and the market is nearly there. We remain long our invested positions but are now looking to begin possibly trimming profits including our Mega Cap Tech stocks.
D&D is still looking for a 15% correction so remain optimistically cautious on this rally.
DOW up 1.70%
S&P 500 up 1.20% (3232.39)
NASDAQ up 1.13%
VIX up 4.98% to 25.74
Oil down -3.36% to 38.22 a barrel.
New York City begins to reopen after daily cases and deaths have dropped off.
New Covid-19 hotspot outbreaks include Brazil, Mexico, India, Pakistan, and Canada which are all continuing to spike on a daily basis.
Global Virus cases: 7.06 million+
Global Virus deaths: 404,142+
US Virus cases: 1.95 million+
US Virus deaths: 110,771+
~ Dave James / Principal Trader and Market Strategist