7/21/20 Market Notes
The S&P 500 crossed into positive territory for the year on Monday as US equities advanced on encouraging vaccine data from both AstraZeneca and Pfizer along with the expectation of further economic stimulus getting passed before Congress’ August recess. The work-from-home trade helped push the Nasdaq Composite Index to another new high fueled by gains in Amazon and Zoom. The NDX is getting top-heavy; Apple, Microsoft and Amazon account for nearly 35% of total index exposure. The S&P 500 Index gained 27 points (0.8%) to close at 3,252, the Dow rose 9 points to 26,681, and Nasdaq added 264 points (2.5%) to 10,767. The 10-year Treasury yield dipped to 62 basis points and the Dollar ticked lower in a choppy trading session with little on the economic calendar. Crude oil fluctuated near $41 per barrel, and gold resumed its rally, closing $7.71 higher at $1,818.14.
Asian stocks were broadly higher overnight; and European equities are at their highest rate in four months, with the German DAX turning positive for the year, after leaders announced an additional $750 billion Euro economic recovery plan. US futures suggest that the rally will continue this morning as earnings season picks up the pace. Phillip Morris, Coca Cola, Novartis, and Lockheed are among the notable names reporting before the bell; and Texas Instruments and Capital One report after the close.
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.