5/26/20 Market Notes
We saw a strong US open this morning based on continued optimism of economic reopening. The S&P is poised to open above 3,000 for the first time since March 5th. Japan led Asian equities higher overnight, rising 2.55% and European shares are up as well. Oil futures are trading higher amid hopes that supply cuts and an increase in demand will cure the supply/demand imbalance. Safe haven assets are under pressure today with the US Dollar, gold, and US Treasuries falling. In company and sector news: Merck is up in pre-market trading after announcing plans to develop both treatments and a vaccine for covid-19. United Airlines, Marriott International, Expedia, and TripAdvisor are all up at least 5% in anticipation of easing travel restrictions as vacation season quickly approaches. Signs that new case rates and new deaths are declining in the hardest hit US States are helping underpin recent gains; as is the unprecedented amount of liquidity provided by central banks around the world. While the fundamentals remain in place for long term growth and economic recovery; volatility will likely continue as markets deal with potential setbacks and changing assumptions along the way. This week markets will be watching Consumer Confidence, Q1 GDP, Home Sales, and Unemployment. Sincerely,
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.