4/29/20 Market Notes
Tuesday proved to be a mixed bag for investors. On the one hand equity and oil markets were volatile and ended lower for the day. On the other hand, fixed income markets stabilized and continued to strengthen, a positive sign for certain. The S&P lost about ½%, while the Dow Jones Industrial Average shed 32 points or 0.13%, and the NASDAQ declined by 1.40% as the Healthcare, Technology and Communication Services sectors underperformed the other sectors of the S&P. Seven of the eleven sectors comprising the S&P did end up higher, the Energy, Materials and Industrial sectors all rose about 2%. Oil prices swung wildly on Tuesday, dropping as much as 20% before recouping their losses to end slightly higher. Of course these price moves are somewhat artificial and have little impact for traditional investors, as the moves represent action in futures markets, to which most have little or no exposure. Google’s parent company Alphabet (GOOG) reported better than forecast earnings last night, helping to lift premarket equity futures which are indicating a strong opening as of 8:30 am this morning. International bourses are generally higher, as oil prices have risen sharply in overnight trading. The U.S. dollar is slightly weaker, but still close to the top of its trading range, while gold prices are back above $1,700 per ounce. This afternoon’s FOMC meeting minutes release will provide the first official written record of what the various committee members are concerned about and their favored approach. The 2 O’clock press conference with Fed Chair Jerome Powell is unlikely to provide additional insights, as the Fed is keen on displaying unity and consistency during these uncertain times.
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.