Commenting on coronavirus stimulus talks in Washington and today’s trading, Gorilla Trades strategist Ken Berman said:
The major indices are virtually unchanged at midday following a choppy and mixed morning session on Wall Street. Trading activity has been relatively low as traders took a step back ahead of the slew of key job market releases that will come out in the second half of the week. The improving U.S. COVID picture continues to support equities, and the most lockdown-sensitive issues have been relatively strong in early trading, as the number of infections hit new multi-week lows both in the U.S. and globally in the past 24 hours.
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Coronavirus Stimulus Talks In Washington Are Expected To Move The Markets
In economic news, the IBD/TIPP sentiment number increased by more-than-expected while factory orders also surged higher, This morning’s earnings reports were a mixed bag, but while most domestic stocks fared well post-earnings, European assets sold off in pre-market trading due to the weaker results and the dire Spanish COVID numbers. Disney's (DIS, +1.1%) report will highlight the after-hours session, but the coronavirus stimulus talks in Washington have the most potential to move markets, in the case of a deal or a major breakthrough.
Dow: 26,767, + 103 or 0.4%
S&P 500: 3,300, + 5 or 0.2%
Nasdaq: 10,896, - 7 or 0.1%
Russell 2000: 1,512, + 5 or 0.3%
Market breadth has been encouragingly strong this morning, with advancing issues outnumbering decliners by a 3-to-2 ratio on the NYSE at midday. Only 5 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 114 stocks hit new 52-week highs. The major indices have been trading above their daily VWAPs (Volume-Weighted Average Price) for most of the morning session, pointing to intraday buying pressure. While most of the key sectors are in the green at midday, with only healthcare stocks drifting lower on average, several cyclical sectors, such as industrials and financials have been showing weakness again, and since the rally in the tech sector also stalled, choppy trading might continue in the afternoon. Stay tuned!