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.
Pros And Cons Of Tail Risk Funds
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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!