4/9/20 Market Notes
Stocks rose sharply on Wednesday, led by a 4 3/4% gain in the Russell 2000 small cap index. The Dow Jones Industrial Average rose 779 points, or 3.44%, as the S&P 500 registered a similar gain and the NASDQ rose 2.58%. All eleven sectors of the S&P were higher, led by the Real Estate, Utilities, Energy and Health Care sectors, as Consumer and technology shares lagged. Oil rose almost 10% on continued optimism that a truth between Russia and Saudi Arabia can be achieve soon. The U.S. dollar was mostly higher, while gold was flat and the benchmark Ten Year Treasury Yield rose above 3/4%.
On the political front, Bernie Sanders dropped out of the Presidential race, effectively making Joe Biden the Democratic nominee. While some have reported that the market rose after Mr. Sander's exit from the race, while we see correlation, we doubt there is causation. A rotation and expansion of stocks that rebounded as a result of some aggressive investors scooping up beaten down names, as well as an overall sense of optimism that "the curve" is indeed flattening in New York City as well as the State of California. European and Asian bourses are mostly higher as a follow through to yesterday's strong performance by U.S. markets.
In addition to weekly jobless claim, March PPI and April Consumer Confidence numbers, investors will also get a slew of earning to digest. Delta Airlines (DAL), Johnson & Johnson (JNJ), Wells Fargo (WFC), Bank of America (BAC) and several other widely held stocks are set to report first quarter earnings today. What will be most interesting are the earnings calls in which corporate chieftains are expected to provide a revised outlook for the remainder of the year.
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.