Commenting on the off-the-shelf steroid dexamethasone as a treatment for Covid-19 and trading at mid day, Gorilla Trades strategist Ken Berman said:
Reports Of Dexamethasone Treating Covid-19 Triggers A Rally
The major indices are all sporting considerable gains at midday following a wild morning session across asset classes. A promising British report regarding a COVID-19 treatment based on the off-the-shelf steroid dexamethasone triggered a broad rally in stocks, and even though the large-cap benchmarks quickly gave back a large chunk of their gains, the most lockdown-sensitive issues remain in the green. The steroid reduced the risk of death by up to 35% among the patients on ventilators, and since it's widely available globally, it can be of immediate help in the fight against the virus.
ARK Invest is known for targeting high-growth technology companies, with one of its most recent additions being DraftKings. In an interview with Maverick's Lee Ainslie at the Robinhood Investors Conference this week, Cathie Wood of ARK Invest discussed the firm's process and updated its views on some positions, including Tesla. Q1 2021 hedge fund letters, Read More
The blowout U.S. retail sales report has also been helping equities in pre-market market trading, as both headline and core sales roared back in May amid the reopening push. The NAHB Housing Market Index was much better-than-expected as well, just as a key German sentiment indicator, but U.S. industrial production missed the consensus estimate by a wide margin, only bouncing back by 1%. Fed Chair Jerome Powell signaled caution regarding the Central Bank’s corporate bond buying program in his testimony ahead of the Senate Banking Committee, causing a brief but steep dip in stocks, so we could be in for heavy trading in the afternoon too.
Dow: 25,252, + 508 or 2.0%
S&P 500: 3,126, + 60 or 1.9%
Nasdaq: 9,876, + 150 or 1.6%
Russell 2000: 1,450, + 31 or 2.2%
Market breadth has been very strong this morning as the Russell 2000 continues to show strength, with advancing issues outnumbering decliners by an over 10-to-1 ratio on the NYSE. Only 2 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 85 stocks hit new 52-week highs. The major indices have been trading below their daily VWAPs (Volume-Weighted Average Price) for most of the morning session, pointing to intraday selling pressure. The real estate has been showing strength in early trading, together with energy-related issues, industrials financial, and tech stocks, but all of the key sectors have been enjoying inflows, and investor sentiment improved significantly compared to last week. Stay tuned!