The major indices are mixed and flat midday following a relatively quiet and bullish overnight session. Several key Asian and European benchmarks hit fresh multi-month highs again, as the reopening rally continues to gain momentum, and the rumors of another German stimulus package even added to the buying pressure. The continued nationwide protests haven’t changed the bullish sentiment on Wall Street, although the dollar is set to lose ground for the fourth day in a row, in part, due to the increasing domestic political uncertainty.
The Price Of Crude Oil Hits Another High
The economic calendar has been virtually empty today, as traders are still waiting for the Ward total vehicle sales number. The much better-than-expected Spanish unemployment report gave a notable boost to risk assets in pre-market trading and growth-related assets remain very strong, despite the still high number of new COVID cases. The price of crude oil hit another almost three-month high in early trading, with the rumors regarding the extension of the OPEC’s supply cuts supporting the commodity, while oil and copper were also lifted by the improving global economic outlook.
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Dow: 25,598, + 123 or 0.5%
S&P 500: 3,052, + 3 or 0.1%
Nasdaq: 9,507, - 45 or 0.5%
Russell 2000: 1,419, + 4 or 0.3%
Market breadth has been relatively strong again this morning, thanks to small-caps, with advancing issues outnumbering decliners by a 4-to-1 ratio on the NYSE at midday. Only 3 stock hits new 52-week lows on the NYSE and the Nasdaq, while 75 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 session. Cyclical issues have been very strong compared to the large-cap benchmarks for the second day in a row and especially the energy and financial sectors have been enjoying tailwinds, while tech stocks and the healthcare sector continue to be mixed because of the improving economic outlook. Stay tuned!