4/15/20 Market Notes
Continued good news relating to the coronavirus helped lift investors' spirits on Tuesday, overcoming big earnings misses from JP Morgan (JPM) and others. Stocks started and finished the day on a strong note, with the Dow Jones Industrial Average rising 558 points (2.39%), while the S&P 500 gained 3.06%, the NASDAQ 3.95% and the small cap Russell 2000 index gained 2.10%. Growth stocks generally outperformed their value counterparts, which is not surprising as investors tend to seek out growth in low growth environments. On a sector basis, the Energy sector was the sole looser, draping 1/2% as oil prices fell nearly 10% for the day. Consumer shares, both discretionary and staples, rose the most, gaining more than 4%. The Technology sector got a boost from a 9%+ gain in Tesla (TSLA) shares and strong performance by several semiconductor stocks. The benchmark Ten Year Treasury yield was effectively unchanged at 0.755%, while the U.S. dollar rose slightly and gold prices rallied to a 7 year peak. Overnight, Asian and European bourses both fell as worries over a prolonged global recession and a potential second wave of COVID-19 unnerved market participants. Premarket U.S. equity futures are down as well. No one knows exactly how long this predicament will last, but we know that many of our state leaders are working closely together to coordinate efforts and bring back normalcy. Separately, traditional business rivals, such as Apple (AAPL) and Google (GOOG) are working closely together to help the medical and scientific community better understand and track the movement of the virus. This new found collaboration could prove transformative and beneficial to the world as a whole. In the meantime, as the trees and flowers slowly start to blossom, we can all look forward to warmer days, which many of us will be able to enjoy in our tranquil back yards. We will enjoy time with family and communicate with friends and relatives via technology, bringing all of us closer together. And soon enough, we will enjoy beach days and runs through the park once again.
Disclosures: This market commentary is written by the 1879 Advisors® 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.