D&D Note (6.22.2020) ~ Markets Rise But Gains Capped By Increasing Covid-19 Cases And Hospitalization Rates ~
Yesterday Futures opened with negative sentiment down nearly 1% then rose over night. Mega Cap Tech stocks helped push the overall markets up in cash trading today. However, gains got capped on increasing Covid-19 cases and hospitalization rates.
Some reopening trades gained on the day too with the likes of Retail stocks. But companies like Airlines, Casinos, and Hotels stocks fell on the day. This signals an unwinding of the overall reopening trade.
Existing home sales fell 9.7% in May and sales were down 26.6% annually. This marks the largest decline since 1982. Realtors are hopeful this represents the bottom of the housing market.
Apple held its annual WWDC today and historically this has always been a sell the news event in the days after the conference.
Today D&D trimmed profits in the following: PYPL (up 145%), SHOP (up 190%), AAPL (up 85%).
In the last hour of trading stocks paired gains as more Coronavirus negative news came out worrying investors. In the final half hour to last 10 minutes of trading stocks gained to close at or near the highs of the day.
DOW up 0.59%
S&P 500 up 0.66% (3118.24)
NASDAQ up 1.11%
VIX down -9.54% to 31.77
Oil up 2.14% to $40.60 a barrel.
Gold hits near its highest futures spot price since 2012 with the metal gaining today up 0.75% to $1766.20 an ounce.
States seeing an increase in hospitalizations due to Covid-19: Alaska, Arkansas, Arizona, Georgia, Montana, North Carolina, Nevada, Oklahoma, Oregon, South Carolina, Texas, Utah, Washington, Wyoming.
Coronavirus cases are increasing by 5% or more in 25 states. Florida, Texas, and Arizona all continue to see alarming increases.
In conflicting statements from the White House, Trade Adviser Peter Navarro says the White House is preparing for a potential “problem in the fall.” While Chief Economic Advisor Larry Kudlow says a second wave of the coronavirus “isn’t coming.”
Global Virus cases: 9 million+
Global Virus deaths: 469,239 +
US Virus cases: 2.29 million +
US Virus deaths: 120,121+
~ Dave James / Principal Trader and Market Strategist