D&D Note (7.2.2020) ~ Surprise Unemployment Drop Boosts Stocks Before Long Holiday Weekend ~
Markets gapped up on the open on the surprise unemployment drop to 11.1%. But this is a lagging number and does not factor in the recent re-closing of states so current number is likely higher.
Many economists foresee double digit unemployment into next year. Stocks paired gains throughout the day.
Interestingly all assets classes where up (stocks, bonds, the dollar, oil, and gold).
Volume was light roughly 20% lower than average as it is a long weekend with markets closed tomorrow ahead of the 4th of July holiday.
There was a reversal in last hour with the VIX rising and indices took a leg lower to close near the lows of the day but still in the green.
DOW up 0.36%
S&P 500 up 0.45% (3130.01)
NASDAQ up 0.52%
VIX down -3.28% to 27.68
Oil up 1.31% to $40.34 a barrel.
Gold up 0.46% to $1788.10 an ounce.
Florida is seeing an out of control outbreak of Covid-19 reporting 10,109 new cases in one day.
Moderna stock fell as much as 9% after a report was released saying their Coronavirus vaccine trial has been delayed.
21 states along with Washington D.C. are now mandating people wear masks to help prevent community spread of the virus.
Global Virus cases: 10.78 million+
Global Virus deaths: 518,121+
US Virus cases: 2.72 million+
US Virus deaths: 128,496+
~ Dave James / Principal Trader and Market Strategist