5/6/20 Market Notes
It was an interesting day on Wall Street, as stocks ended the day significantly off their session highs, but still with solid gains. The Dow Jones Industrial Average gained 133 points, or just over ½%, while the S&P 500 and NASDAQ gained about 1%. Earlier in the day the NASDAQ and Russell 2000 index were both up more than 2%, before stocks started selling off after a report surfaced that the White House was considering dismantling the coronavirus task force. The Financial sector was the only losing sector on Tuesday, as the healthcare and technology sectors led the way with a 2.15% and 1.42% respective gain. Oil rose for a fifth day in a row, gaining 20%, helping to lift stocks and the energy sector in particular. The U.S. dollar rose as trade tensions between The United States and China unnerved some investors. Gold prices also rose, while Treasury yields climbed slightly. Overnight European and Asian bourses are generally higher, with the exception of the Japanese Nikkei, which is off by nearly 3%.
In addition to focusing on the efforts by 38 States to reopen their economies, investors are also observing a very positive trend in the housing market. Mortgage purchase applications have risen for the third week in a row, as the national average interest rate on a 30 year mortgage has fallen to 3.4%. And while refinance applications are down slightly last week, they are up over 200% from a year ago when rates were nearly 1% higher, according to a report by CNBC. This is a very positive sign for the housing market, in particular when you consider the fact that many states are still under ‘Stay at Home’ directives.
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.