Your Tuesday Market Blip 5/26/20

Your Tuesday Market Blip 5/26/20

Stocks took off on upbeat sentiment with the Dow gaining 529 points to close at 24,995. Trading volume was up significantly. Banks and energy stocks led the way while tech held steady for the most part. BTS is 70% HY and IBD has markets in rally mode.
Economist Chris Low over at FHN noted that big crowds this weekend across the country will be watched over the next couple of weeks to see if they result in a spike of infections. If Memorial Day gatherings lead to a spike then we could see extended lockdowns and a potential market pullback Stay tuned.
The chief economic advisor at Allianz Global Investors, Mohamed El-Erian was on CNBC this morning waxing poetic about good news on the health side with work on vaccines and on the economic side with improved engagement by consumers. While noting that risks remain he said there are several positive data trends he is following. These include US new home sales which rose unexpectedly by 0.6% in April. The gurus missed the mark badly as consensus called for a 21% drop in new home sales. Also consumer confidence in May nudged higher to a reading of 86.6 up from 85.7. The expectations index also climbed from 94.3 to 96.9.
Over the Memorial Day weekend the scouts placed flags at the GAR cemetery on Saturday and picked them up on Monday. The cemetery has not been mowed and looks a bit scraggly. Apparently Seattle Parks is on lockdown and the grass is not getting clipped. We need to get our “mow-joe”’ back!