D&D Note (6.24.2022) ~ Markets Continue the Bear Market Rally Closing at Session Highs ~
Stocks ripped higher by 3% today as the Bear Market relief rally continues to grind higher. The indexes all closed at session highs.
Markets are poised to rally next week with the void of market making news. JP Morgan has made a call that we could see up to a 7% gain next week with month end rebalancing.
If we do see a further continuation in the rally it will likely be short lived.
The big story of the day is the Supreme Court overturning Roe V. Wade. The ruling puts at risk other personal rights such as gay marriage and access to contraceptive.
The Ukraine is formally accepted as candidate to join the European Union. This is just the first step in the process and the EU hasn’t accepted a new member since Croatia in 2013.
The Consumer sentiment survey by University of Michigan shows inflation expectations ease slightly to 5.3% annualized rate down from 5.4% earlier this month.
Stock Specific News:
FedEx rose today after reporting earnings last night and saying they expect earnings to rise in its current fiscal year.
Microsoft gained today after Citi names the stock a “top pick” and saying the sell-off in software stocks is almost done.
Carnival Cruise Lines surged after company said they have had their best booking volumes since the Pandemic started.
Meta, Netflix, and PayPal all got added to the Russell 1000 value index at the end of todays session.
Closing Markets (as of 1:15pm PST)
DOW up 2.69%
S&P 500 up 3.06% (3,911.74)
NASDAQ up 3.34%
VIX down -6.2% to 27.25
2 Year Note up 2.96bp to 3.05%
10 Year Note up 4.32bp to 3.13%
Oil up 3.107% to $107.52 a barrel.
Gold down -0.131% to $1827.40 an ounce.
Bitcoin up 1.92% to $21,296.90
Ethereum up 9.46% to $1,240.00
~ Dave James / Principal Trader and Market Strategist
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