The stock market started the day with significant gains but quickly retreated as cases of coronavirus continue to spike in the states of Florida, Arizona, and California. On top of that, the WHO (World Health Organization) reported this afternoon that the pandemic has entered what WHO Director-General Tedros Adhanom Ghebreyesus termed "a new and dangerous phase" as daily Covid-19 cases hit record highs.
Despite the turn lower at the end of the week, all three major indexes will post weekly gains, their fourth straight week of gains. The S&P 500 will post a weekly increase of +2%, while the DOW will check-in at +1%. The NASDAQ has the largest weekly gain standings at +3%. Reason for the weekly gains, a record surge in U.S. retail sales, and the Federal Reserve announcing it will buy individual corporate bonds. Continue reading "Stocks Mixed As Coronavirus Cases Spike"→
The DOW, S&P 500, NASDAQ, and Bitcoin all triggered new green monthly Trade Triangles signaling a move to a long-term uptrend. The move higher was on the back of a historic and surprising gain in U.S. jobs that raised hopes that the economy is starting to recover from the coronavirus pandemic.
U.S. employers added a shocking 2.5 million jobs last month, the largest gain on record, while the unemployment rate slid to 13.3%, the Labor Department said Friday. Economists polled by the Dow Jones expected a drop of more than 8 million jobs and the unemployment rate to nearly reach 20%, which would have been the highest since the 1930s. Continue reading "Indexes Trigger Monthly Trade Triangles"→
Crude oil just posted its best month ever after suffering its worst month ever, not that long ago. Crude oil in the July contract posted a monthly gain of +57%! Yes, you read that right, +57%, pushing the price of oil above $35 a barrel. It wasn't all that long ago that many traders learned that oil and futures could indeed trade in negative territory. Quite a turnaround, but will it continue?
As for stocks, the major indexes ended the week mixed on a daily level after President Donald Trump signaled no changes to the trade deal with China despite rising tensions in his Friday afternoon press conference form the White House rose garden. But on a weekly level, all three indexes posted weekly gains. The S&P 500 gained +3%, the DOW +3.7%, and the NASDAQ had a weekly increase of +1.7%.
The US-China trade tension has once again peaked its head out and put pressure on an already skittish market. Earlier in the week, the Senate passed a bill that would make it more difficult for Chinese companies to list on US stock exchanges. That in itself wasn't enough to curb the weekly rally for the major indexes that will see the DOW, S&P 500, and NASDAQ post weekly gains of +2.8% or better, bouncing back from last weeks losses.
On a daily level, the market will end the week on weak trading heading into the long holiday weekend. Part of the muted market action today is due to China releasing drafted legislation overnight that shows new national security measures in Hong Kong after last year's burst of anti-government protests in the city. That law is expected to increase Beijing's hold over Hong Kong. China also opted against setting a GDP target for 2020 as the coronavirus batters the second-largest economy in the world. Continue reading "US-China Trade Tension Mutes Market"→
Stocks are looking to end the week lower after a dismal retail sales number was released Friday morning. Retail sales plummeted a record -16.4% in April, which was much worse than the -12% plunge expected by economists. March retail sales were revised to a decline of -8.4% from the previously reported -8.7% decrease. Core retail sales, excluding the volatile auto and gas components, tumbled -16.2%, following a decline of -2.8% in the prior month. Economists were predicting a -7.6% drop in core retail sales for the month.
Within core components, consumer spending online rose +8.4% and fell -13.2% at grocery stores in April. Retail sales at department stores sank -28.9%, furniture stores saw a -58.7% drop in spending, sporting goods sales fell -38%, sales at electronics stores tumbled -60.6%, and spending at clothing retailers plummeted the most at -78.8%. Continue reading "Retail Sales Plummet Pressuring Market"→