6/4/20 Market Notes
The global equity rally continued Wednesday with positive economic data adding to the already positive sentiment. The S&P 500 added 42 points (1.4%), the Dow advanced 527 points (2.1%) and Nasdaq gained 75 points (0.8%); in heavy volume. Treasuries fell with the yield on the benchmark 10-year note gaining 8 basis points to 0.77%, the US dolalr fell for the 5th consecutive day, and gold prices declined. The ISM Services Index improved to 45.4 from April’s 41.8, beating the consensus forecast and helping push shares higher. Other upbeat news included the ADP Employment Change Report indicating that the private sector shed 2.76 million jobs in April; much better than the forecast 9,000,000 decline. The ADP data precedes Friday’s nonfarm payroll report which is expected to show US unemployment increasing to 19.5 percent in May from 14.7% in April. Consistent with the recent “catch-up” rally, Industrials, Financials, and Energy sectors lead the charge yesterday; while Health Care, Consumer Staples, Communications Services and Information Technology did not do as well. Year to date S&P 500 sector performance tells a more complete story of the rebound from March lows. As of Tuesday’s close: Information Technology is up 7.7% year-to-date, Consumer Discretionary +3.2%, Communications Services + .09%, Health Care +0.4%, Consumer Staples -5.6%, Utilities -6.5%, Materials -7.6%, Real Estate -8.4%, Industrials -15.8%, Financials -22.7%, and Energy -33.3%. Equities futures point to a subdued opening today after posting gains in four of the last five sessions.
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.