Your Tuesday Market Blip 6/9/20

Your Tuesday Market Blip 6/9/20

Today was another day of two markets. The tech sector did well and everything else pulled back. At the close the Dow was off 300 at 27,272 while the NASDAQ was up 29 at 9,953. Trading volume was well off across the board and what seems to be happening is that big private money managers missed the recent rally and are not willing to dive in at this point while the Robinhood investors caught the rally and are happy. Amazon, Apple, Netflix and Micropoopie all were up while blue chips like energy, banks and healthcare were off.
The markets might also be seeing bouts of speculations as shares of companies going bankrupt are bid up with small speculators swarming to these stocks. Companies like Hertz and Chesapeake Energy are being subject to immense levels of volatility almost like they were part of a video game and this could be a warning to the larger market that valuations do not always reflect reality. Caution is advised as the age of disruption rolls on.
Oil prices edged higher with WTI crude trading at $38.71 per barrel up 1.3%. Demand continues to perk up and on the supply side Libya closed its top oil field. Fuel consumption in the US is 20% below year ago levels while jet fuel consumption is down almost 80%. US crude inventories are expected to decline as drillers continue to shutter wells while roads see increasing traffic.