Hi Everyone,
The stock market bounced back following yesterday’s pullback and finished near its intraday high, as investors continued to gobble up tech stocks, preparing for the post-COVID world. The Dow was up 33 or 0.1%, to 23,538, the Nasdaq gained 139, or 1.7%, to 8,532, while the S&P 500 rose by 16, or 0.6%, to 2,783. Decliners outnumbered advancing issues by an almost 3-to-1 ratio on the NYSE, where volume was moderate.
Traders said that even though the large-cap benchmark ticked higher thanks to the tech giants, a majority of stocks lost ground due to the weak economic releases. As one trader explained, “While the likes of Amazon (AMZN, +4.4%) and Netflix (2.9%) hit new all-time highs again, small-caps and financials remained under pressure today, as the divide between the winners and the losers of the lockdown continues to widen amid the mounting economic woes.”
Today’s weak economic releases delivered another blow to the struggling financial and industrial sectors, with the dismal Philly Fed Index and the more than 5 million new jobless claims both weighing on cyclical issues. FOMC member Kashkari urged mega-cap stocks to sell equity in order to prepare for the looming wave of defaults in the most-affected sectors. The fact that the small business loan program already ran out of funds is also a warning sign for banks, just as crude oil hit a fresh 18-year low.
The President held a press conference today, sharing the guidelines for relaxing the stay-at-home orders in the coming weeks, and a few key points of the plan had already been leaked. Some states will likely be allowed to open some businesses and schools before May 1, but the easing of these measures will come in phases nationwide. The plan will reportedly put emphasis on remote work in the first phase, and some social distancing rules might stay in effect until the risk of secondary outbreaks diminishes.
As always, have a great evening, stay calm, stay home, stay healthy, do your part to flatten the curve and stay tuned!!!
Joe
Joseph Esposito
President
The Pinnacle Financial Group
T: 516.763.9700
F: 516.763.9706
Joseph.Esposito@lpl.com
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Investment Advice offered through The Pinnacle Financial Group, a Registered Investment Advisor.
The Pinnacle Financial Group is a separate entity from LPL Financial.
