Your Monday Blip 6/15/20

Your Monday Blip 6/15/20

Markets continue to seek traction. The Dow opened today’s trading with a 500 point loss but as the day wore on the Federal Reserve said it support corporate bonds and this news sent stocks clawing higher. At the close the Dow finished up 157 at 25,763 in what was a big upside reversal on heavy trading volume. IBD still has markets in confirmed rally mode while BTS backed off on the gas peddle a little bit. One additional driver behind today's reversal was news that Walmart announced a partnership to work with Canadian online firm Shopify to help its 1,200 merchant customers sell products on Walmart.com. The deal helps Wally’s World compete with Amazon.
BTS has moved to a slightly more defensive position by dropping high yield exposure to 60% from over 70% while increasing long treasury exposure to 40%. The move comes in light of last week’s selloff and seems to highlight the uncertainty of the current environment where the economy is slowly improving yet not out of the woods.
Thrivent mutual funds sent over an interesting list of facts. 1) Since President Trump declared a national emergency on Friday March 13, the S&P 500 Index has risen over 12%. 2) In mid-March the Federal Reserve was purchasing $75 billion of treasury bonds per day but today that level has fallen to $4.5 billion per day. 3) The number of job openings has fallen from 7 million nationwide at the end of February to 5 million at the end of April. 4) US oil production was 13 million barrels per day on March 27th and now stands at 11.1 million barrels per day as of last week. 5) USC announced it will increase its tuition by 3.5% regardless of whether classes will be in person or online.

Comments are closed.