D&D Note (9.14.2020) ~ Tech Rebounds Lifting The Overall Markets Up On M&A Monday And The WHO Reports Record One-Day Spike In Global Covid-19 Cases ~
Tech lifts all boats today on a broad based rally with Apple and Nvidia the biggest contributors to the S&P 500. Over 90% of S&P 500 companies were higher on the day.
UnitedHealth was the biggest lifter on the DOW adding 47 points to the index today.
OPEC cuts its oil demand forecast for 2020 and 2021 as the ongoing pandemic has crushed travel and thus the need for oil.
DraftKings surges after deal with ESPN to be the exclusive provider of daily fantasy sports.
Tesla jumps over 12% as tech in general rallied plus comments from Goldman Sachs saying that demand in China for Tesla cars is picking up. Shares of the company are still around 20% below the Sept 1 all time high.
M&A Monday activity (mergers & acquisitions) was the biggest yet so far this year (M&A deals are announced on Mondays for deals struck over the weekend hence the name M&A Monday):
Oracle wins TikTok deal to be the U.S. partner for parent company ByteDance.
Nvidia jumps 6% today on news they are moving to buy Arm Holdings from SoftBank. Jefferies raises price target for Nvidia to $680 from $570.
Biotech rallies for best day since April. Immunomedics jumps 106% on the news Gilead is acquiring the company.
Verizon announced they will buy wireless service provider Tracfone.
The positive M&A activity gave investors enough of a reason to buy the market today.
DOW up 1.18%
S&P 500 up 1.27% (3383.54)
NASDAQ up 1.87%
VIX down -3.80% to 25.85
Oil down -0.08% to $37.30 a barrel.
Gold up 0.91% to $1958.34 an ounce.
The World Health Organization reported a record single-day spike in global Covid-19 cases with more than 307,000 new cases in 24 hours. That is more than 1,000 new cases higher than previous record set on Sept 6th.
The three countries adding the most new cases are India, United States, and Brazil.
Israel is now the first country to reimpose lockdowns as the country sees a surge in new cases.
Global Virus cases: 29.12 million+
Global Virus deaths: 925,749+
U.S. Virus cases: 6.53 million+
U.S. Virus deaths: 194,339+
~ Dave James / Principal Trader and Market Strategist