Your Tuesday Market Blip 5/5/20

Your Tuesday Market Blip 5/5/20

The Dow closed up about 133 points to 23,883. Trading volume was up. The NASDAQ gained about 98 points to 8,809 on the strength of technology stocks. Disney will host earnings after the close today and should shed light on how the entertainment business is holding up under the lockdown. While streaming services are doing well Disney is suffering from the closure of theme parks, hotels, movie production sets and cruise ships.
Economies across the country continue to slowly open. Farmers markets in Seattle are adding new neighborhoods each week. Gov Inslee is not allowing hair salons or general retail to open until June which sucks but the pressure to reopen is building. Starbucks said it will open 85% of its stores by the end of the week. When the lockdown started the company shifted to drive thru and selling through outlets located within grocery stores. CEO Kevin “Not KJ” Johnson said they are ready to reopen standalone stores by the end o the week with online order and curbside pickup.
The latest economic numbers are dismal. The ISM service sector reading fell from a growth level of 52.5 to a contraction level of 41.8 which was better than expected. The Business Indicator portion however hit a low of 26 which broke the previous low set in November of 2008 at 34.4.
Oil prices continue to move higher as WTI crude gained another 20% today and closed at $24l54 per barrel. Natural gas futures went above the $2 dollar mark and finished the day at $2.09 per mmbtu. This is a 15 week high for natural gas where supply has fallen 6% while demand is expected to rise 5% over the next couple weeks.