Commenting on the reopening push and today’s trading Gorilla Trades strategist Ken Berman said:
Q1 2020 hedge fund letters, conferences and more
The major indices are trading slightly in the red at midday, with the lockdown-sensitive issues being deep in the red again. The record number of new COVID cases in the U.S. spooked investors overnight but despite the troubling reports, stocks recovered their early losses after losing the most ground in almost two weeks yesterday. Banking stocks got a boost from the news that U.S. regulators are set to ease some of the investment restrictions imposed following the financial crisis, which could lead to higher profitability in the sector down the road.
The Number Of Continuing Claims Drop Due To The Reopening Push
In economic news, the durable goods report beat expectations across the board, with the headline measure surging higher by 15.8% and the more stable core sales jumping by 4%. The weekly number of new jobless claims was much higher-than-expected, coming in at 1.48 million but the number of continuing claims dropped below 20 million thanks to the reopening push. The final first-quarter GDP print was in line with expectations and the lack of a negative revision is a positive sing in light of the pandemic's disruption.
Market Wrap
Dow: 25,383, - 64 or 0.3%
S&P 500: 3,041, - 10 or 0.3%
Nasdaq: 9,891, - 17 or 0.2%
Russell 2000: 1,388, - 1 or 0.1%
Market breadth has been relatively strong this morning, with advancing issues outnumbering decliners by a 3-to-2 ratio on the NYSE. 14 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 41 stocks hit new 52-week highs. The major indices have hovering around their daily VWAPs (Volume-Weighted Average Price) throughout the morning session, pointing to a mixed and choppy afternoon. Besides financial, energy-related issues have been showing strength this morning, bouncing back following yesterday’s bloodbath, but the rest of the market has been stable, with only utilities being deep in the red at midday. Stay tuned!
