Your Wednesday Market Blip 5/27/20

Your Wednesday Market Blip 5/27/20

Stocks marched higher for a second day as news of job cuts at Boeing and Amtrak were sidelined by people tuning in to watch the SpaceX launch. At the close the Dow was up 553 at 25,548. Trading volume was on the rise as IBD and BTS indicators continue to confirm the rally.
Market action the past two days indicates a trend showing that stocks which recovered quickly from the selloff are flattening out while stocks that are still near the bottom are starting to play catch up. Tech and healthcare stocks did a V shaped recovery after the March 23rd market low and several of the them like Microsoft, Amazon and Apple have already gone positive for the year. Meanwhile shares of manufacturing, banks, energy and real estate companies have not fully recovered from the bottom and are still down significantly year to date. Market action the past couple of days has seen stocks in these groups significantly outperform the general market suggesting a rotation into stocks considered cheap and increasing the number of sectors that are participating in the recovery.
The latest data from the National Multifamily Housing Council (NMHC) showed that despite mass layoffs and business stress, people continue to pay the rent. The NMHC reported that by April 20th, 89.2% of renters had ponied up. This reading was down 4% from the same time a year ago. The numbers through May 20th improved to 90.8% of renters faithfully paying the bill. Doug Bibby, President of NMHC said that all the work done by apartment owners to create flexible payment plans contributed in a positive way. Federal stimulus and unemployment also helped. Here in Seattle the unemployment checks are so fat that some workers I talked to grip about getting a pay cut when they go back to work. Unemployment benefits in Washington are so generous they are boosting yacht sales in Nigeria but hey…..I’m not bitter!