Commenting on the likelyhood of a $1 trillion coronavirus stimulus package passing and today’s trading Gorilla Trades strategist Ken Berman said:
The major indices are virtually unchanged at midday as choppy trading continued this morning on Wall Street, with investors mulling a slew of crucial earnings reports. Microsoft (MSFT) and Tesla (TSLA) reported yesterday in after-hours trading, and even though both firms crushed expectations, the software giant opened lower due to its cautious guidance. Twitter (TWTR) also published bullish numbers in pre-market trading, and its shares have been pushing higher ever since boosted by the growth of the company's user base.
David Einhorn's Greenlight Capital returned -2.9% in the second quarter of 2021 compared to 8.5% for the S&P 500. According to a copy of the fund's letter, which ValueWalk has reviewed, longs contributed 5.2% in the quarter while short positions detracted 4.6%. Q2 2021 hedge fund letters, conferences and more Macro positions detracted 3.3% from Read More
Senate May Pass A $1 Trillion Coronavirus Stimulus Package
In economic news, the weekly jobless claims report disappointed across the board, as the number of new claims was well above expected at 1.41 million while continuing claims also ticked higher unexpectedly. Meanwhile, the structure of the next phase of U.S. stimulus is taking shape in Washington and Senate seems likely to pass a $1 trillion coronavirus package, with some form of an extension to the extra federal unemployment benefits. The CB Leading Index was also lower-than-expected, and the Eurozone consumer confidence number added to the economic worries as well.
Dow: 26,913, - 93 or 0.3%
S&P 500: 3,277, + 1 or 0.03%
Nasdaq: 10,689, - 17 or 0.2%
Russell 2000: 1,502, + 12 or 0.8%
Market breadth has been in line with the performance of the major indices this morning, with decliners outnumbering advancing issues by a 5-to-4 ratio on the NYSE at midday. Only 4 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 138 stocks hit new 52-week highs. The major indices have been hovering around their daily VWAPs (Volume-Weighted Average Price) throughout the morning session, pointing to a choppy and mixed afternoon. Besides the relatively strong consumer staples and healthcare sectors, and the lagging energy sector, stocks have been mixed in early trading, and trading activity might remain light throughout the session. Stay tuned!