2/5/20 Market Notes
Stock rose sharply for a second day in a row on Tuesday, as the Dow Jones Industrial Average gained more than 500 points by mid-day before ending the session about 400 points or 1 ½% higher. The S&P 500 also gained 1 ½%, while the tech laden NASDAQ rose by 2.10%. The Utilities sector was the sole looser of the day, falling by 1%, while the energy sectors eked out a gain in spite of a 1% drop in oil prices that put the commodity below $50 per barrel. The Technology sector gained the most, climbing 2.6%, while the economically sensitive Materials and Industrial sectors gained about 1 ¾% each. Gold prices declined about 1 ¾% as investors refocused their attention from safe-haven assets to risk assets. The same sentiment helped push the benchmark Ten Year Treasury yield up by more than 8 basis points to 1.606%, and lift the U.S. dollar slightly.
International bourses are following the U.S.s footsteps, generally being 1% higher in overnight trading, while U.S. premarket equity futures are pointing to a sharply higher open. Oil prices are rebounding sharply, rising more than 2% in early trading, as demand worries relating to the coronavirus appear to ebb after a report indicates an effective drug to combat the virus has been developed.
Before the opening bell rings investors will get the latest trade deficit data, as well as earnings from General Motors (GM), Merck (MRK), Glaxo Smith Kline (GSK), and Boston Scientific (BSX). Tomorrow’s key earnings reports include Twitter (TWTR) and Bristol Meyer Squibb (BMY).
Disclosures: This market commentary is written by the 1879 Advisors Investment Committee and represents the views of 1879 Advisors. This commentary is not investment advice and should not be used as a basis to make investment decisions. Please consult with your registered investment advisor before making any investment decisions.