Commenting on Joe Biden scheduled unveil his COVID relief plan and today’s trading, Gorilla Trades strategist Ken Berman said:
Q3 2020 hedge fund letters, conferences and more
Biden To Unveil His COVID Relief Plan
The major indices are all slightly higher at midday as stocks have been drifting sideways following a bullish open on Wall Street. The Nasdaq and semiconductors, in particular, have been showing relative strength in early trading, and the tech benchmark eked out a marginal new all-time high, despite starting the week in a bearish fashion. All eyes will be on Joe Biden this afternoon, as the President-elect is scheduled to unveil his COVID relief plan which could trigger a surge in activity in after-hours trading.
The Russell 2000 surged to a new record high again ahead of the announcements, adding almost 2% as the furious rally in small-caps continues. In economic news, the weekly new jobless claims data was much worse-than-expected at 965,000, the measure’s highest reading since August, putting even more pressure on the new administration to boost its stimulus plans. The dollar hit an almost five-week high in pre-market trading, but the weak job market data triggered a pullback in the currency with short-dated Treasury yields also extending yesterday’s drop.
Market Wrap
Dow: 31,086, + 116 or 0.4%
S&P 500: 3,818 + 8 or 0.2%
Nasdaq: 13,201, + 72 or 0.6%
Russell 2000: 2,151, + 39 or 1.9%
Market breadth has been relatively strong this morning, with advancing issues outnumbering decliners by an almost 4-to-1 ratio on the NYSE at midday. Only two stocks hit new 52-week lows on the NYSE and the Nasdaq, while 331 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 mixed and choppy afternoon. Energy stocks, the tech sector, and materials are among the strongest issues at midday and apart from utilities all of the main sectors are sporting gains which is a positive sign for the second half of the day. Stay tuned!
