D&D Note (6.29.2020) ~ Stocks & Oil Gain On Better Than Expected Economic Data ~
Surprise positive economic data helped boost markets and oil today despite the weakening Coronavirus data.
Pending Home Sales posted a record gain exceeding all forecasts. Although much of the improvement in economic data came from states beginning to reopen from lockdowns. And now some states are walking back reopening.
Small Cap stocks outperform on the day as they go through quarter end rebalancing.
Facebook traded from gains and losses to finally close up over 1.5% after dealing with fallout from advertisers pulling their ad spend. D&D took some profits in FB off the table today and reduced our exposure.
India is banning TikTok along with over 50 other apps sighting security issues. These are all Chinese apps and shows tensions between the two countries remains high.
S&P 500 is stuck around the 200 day moving average, if we break 3000 then directionality will change and trend to the downside.
Over the last 21 trading days we’ve seen rallies and selloffs to end up virtually flat.
The DOW got a boost today from heavily weighted Boeing. The FAA has given the green light for the 737 Max to begin test flights. Shares of BA traded higher over 13%.
DOW up 2.32%
S&P 500 up 1.47% (3053.24)
NASDAQ up 1.20%
VIX down -8.00% to 31.95
Oil up 2.52% to $39.46 a barrel on bullish economic data coming out of Asia and Europe.
Gold up 0.15% to $1783.10 an ounce.
Almost half of the US population is still without a job due to the pandemic. The reality is we are going to have persistent high unemployment until there is a vaccine and confidence in consumers to go out.
AMC theaters moves back its reopening date to July 30th,
Global Virus cases: 10.19 million+
Global Virus deaths: 502,947+
US Virus cases: 2.56 million+
US Virus deaths: 125,928+
~ Dave James / Principal Trader and Market Strategist