Your Tuesday Market Blip 6/2/20

Your Tuesday Market Blip 6/2/20

The markets have been decoupling from the outside world as investors continue to focus on the progress of economic reopenings. Gurus at US Bank noted that things are opening up more quickly than thought possible just a few weeks ago plus the US is now testing north of 400k people per day for covid. China continues to recover as well which is pushing commodity prices higher.
At the closing bell the Dow was up 267 points on heavy trading volume to close at 25,763. Energy, materials and industrial stocks led the way. IBD still has markets in rally mode and BTS is “majority in” on high yield which is correlated to stocks and the mark of a general market uptrend.
The municipal bond market has rebounded so much since March that bonds are now yielding next to nothing. After investors rushed to cash in March muni bonds were caught up in the downdraft. The Feds then stepped in and stabilized credit markets which in turn led to May being the biggest monthly rise in muni bond prices since 2009. According to Citigroup, muni bonds should continue to hold up because over the next three months the number of bonds maturing will overwhelm new issue and create a $52 billion surplus of cash needing to own this type of bond and putting buying pressure on existing inventory.
As they say in scouts….do a good turn daily.

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