D&D Note (7.28.2020) ~ Late Day Sell-Off Drags Stocks Lower With Rotation Out Of Tech ~
Markets traded choppy to flat throughout the day then had a late afternoon sell-off which dragged the major indices lower on the day.
Negotiations on the new relief bill are proving difficult between Republicans in the Senate and Democrats in the House. Speaker Nancy Pelosi saying that Republicans are “not really ready to have serious negotiation.”
This ongoing congressional debate created too much uncertainty for the market and weigh down risk assets in the final hour of trading.
We saw a rotation out of tech, energy, and materials into the sectors of staples, utilities, and real estate.
Earnings for McDonald’s and 3M both disappointed which dragged the DOW down.
The FED is currently meeting and is expected that the FOMC will maintain the target Fed Funds Rate at 0-0.25%.
Tomorrow the virtual hearing in front on Congress of the Big Tech companies happens.
In overnight trading Gold futures topped $2,000 before pairing gains in todays session.
Canopy Growth (CGC) rallies big today up 14.50% on their USA online CBD store.
TSM sees some profit taking after the company added $72 billion in market cap in 2 trading days propelling it to the 10th largest company in the world overnight.
DOW down -0.77%
S&P 500 down -0.65% (3218.44)
NASDAQ down -1.27%
VIX up 3.56% to 25.62
Oil down -1.59% to $40.94 a barrel.
Gold up 0.97% to $1950.00 an ounce.
Dr. Fauci warns there are signs of possible outbreaks of Covid-19 in Ohio, Indian, Kentucky, and Tennessee.
Global Virus cases: 16.66 million+
Global Virus deaths: 658,861+
U.S. Virus cases: 4.34 million+
U.S. Virus deaths: 149,209+
~ Dave James / Principal Trader and Market Strategist