5/8/20 Market Notes
Stocks had a strong showing on Thursday, as several sectors of the S&P gained more than 2%. The Dow Jones Industrial Average gained 211 points or 0.89%, while the S&P rose 1.15% and the NASDAQ ended 1.41% higher bringing its return positive for the year. Leading sectors included technology, communication services, materials & industrials. The energy sector also rose, in spite of sharp volatility in oil prices, which had gained as much as 11% during the day, before capitulating and ending more than 3% lower by the end of trading. The Healthcare sector and Consumer Staples were the sole declining sectors of the day. The benchmark 10-year treasury yield ended 8 basis points lower, at 0.63% as the latest Initial Jobless Claims numbers spooked some investors and drove a strong safe haven trade along with risk appetite for stocks. The U.S. dollar was mixed, while gold prices were essentially unchanged. European and Asian bourses are sharply higher ahead of the April jobs report, as investors around the world are encouraged by the steps various governments are taking to reopen economies. U.S. premarket equity futures are also higher ahead of the report, indicating a 200 plus point gain for the Dow at the open. The April employment report showed that 20 ½ million American’s lost their jobs during the month, and that the unemployment rate rose to 14.7%. Some had been expecting worse numbers, causing futures to rise after the report was released. Next week’s critical economic data releases include:
Tuesday: NFIB Small Business Confidence Index, Consumer Price Index, Federal Budget
Wednesday: Producer Price Index
Friday: Retail Sales Figures, Industrial Production, Capacity Utilization, Consumer Sentiment, Wholesale Inventories.
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.