June 19, 2020
The U.S. equity markets drifted sideways most of the day yesterday, with the Dow posting another small loss of 39.51 points. The S&P 500 and the NASDAQ ended the day in the green, gaining 1.85 and 32.52 points, respectively. For the week, all three stock indices are on pace to post their fourth weekly gain in the last five weeks. Coming into to today’s trading session, the Dow, S&P 500 and NASDAQ have gained, 1.9%, 2.4% and more than 3%, respectively.
The equity markets are on the move again this morning, with Dow futures up more than 300 points in the pre-market. Driving the rally is a report from Bloomberg News that China was set to increase its purchases of U.S. farm products in compliance with phase one trade deal.
The investment markets continue to process information coming from states who are experiencing an increase in coronavirus cases. The balance between reopening the economy at the local, state and national levels is weighted against the inevitable increase in virus cases. The development of an effective vaccine remains the one variable that is likely to change the conversation. Until then, the protocol of social distancing and wearing masks – as recently required by Gov. Newsome of CA – seems to the most appropriate action toward minimizing the spread of the virus.
Have a great and safe weekend.