Major U.S. stock benchmarks finished Monday above, or near, their prior all-time closing highs, as lockdown measures eased in New York City and elsewhere, sparking optimism about the potential for economy recovery. The Dow Jones Industrial Average US:DJIA climbed 461.46 points, or 1.7%, to end at 27,572.44, its sixth straight gain. The S&P 500 US:SPX rose 38.46 points, or 1.2%, finishing at 3,232.39. The tech-heavy Nasdaq Composite Index US:COMP gained 110.66 points, or 1.1%, ending at 9,924.74, a new all-time closing record. The Dow on Monday finished 6.7% off its closing high in mid-February, while the S&P 500 ended only 4.5% shy of its highest close, according to Dow Jones Market Data. The Federal Reserve has been wildly successful in terms of keeping credit flowing during the pandemic, with major U.S. equity and debt benchmarks already recouping significant lost ground since the COVID-19 pandemic forced the nation into lockdown. The stock rally included not only high-flying technology companies that provided sought-after services during recent shutdowns, but also companies battered by low oil prices and the near halt in travel.
“I’m finding it exciting,” said Diane Jaffee, a senior portfolio manager at TCW, in a telephone interview with MarketWatch, adding that the breath of the recovery and recent sector rotation looks like it’s “not for a short term, but longer term.” Nick Bit: Bull fucking SHIT!
Investors also will keep an eye on what the central bank does next, with the Fed set to release its updated policy statement on Wednesday and its first set of economic projections since December. Investors aren’t expecting the Fed to pull in its backstops or to dial back rates, which currently stand at a range between 0% and 0.25%. But they will look for more clues from policy makers after Friday’s jobs report produced a stunning 2.5 million increase in payrolls in May, when economists had expected as many as 9 million jobs lost in the month, amid coronavirus-related closures. “Some policy makers will look at the results of recent progress and conclude that no more fiscal stimulus is needed,” said Kristina Hooper, Invesco’s chief global market strategist, in emailed commentary on Monday, while pointing to a classification error that made the unemployment rate look better than it actually was.
In other economic data, the National Bureau of Economic Research, the ultimate arbiter of the state of the U.S. economy, said the domestic economy officially entered recession in February, ending its longest period of expansion on record.
Despite civil unrest and rising Sino-American trade tensions, markets have been kept afloat and even made significant gains on the back of trillions of dollars in support from the U.S. government and the Fed, whose balance sheet has ballooned to $7.21 trillion from around $4 trillion in March. Investors also have been heartened by efforts to reopen the U.S. economy in the aftermath of pandemic-related closures. Reopening plans are in various stages in all 50 U.S. states. New York City, one of the regions hardest hit by coronavirus, launched the first phase of its reopening on Monday, including the restart of construction and limited retail operations. “From the market’s perspective, the economic impact of COVID is basically over. We still may see spikes in cases, but it will be difficult politically to shut down economies again,” said Bill Callahan, an investment strategist at Schroders, in an interview. Shares of oil and airline companies, industries that were both ravaged by lockdown measures instituted to stem the pandemic, outperformed the broader market on Monday. The U.S. Global Jets US:JETS, a fund that tracks commercial airline stocks, gained 9.2%.
Still, Arizona, Arkansas, California, Florida, North Carolina, Texas, Utah and other states are reporting an increase in the number of COVID-19 infections after having lifted some restrictions, the Wall Street Journal reported, even as the overall case tally is sliding in the U.S., per data compiled by Johns Hopkins University.
As of early Monday, there were more than 7 million confirmed cases of the deadly infection globally, with 1.9 million cases in the U.S., according to the data.
Nick Note: let me see if i get this. Unemployment over 20% when you uncook the books. GDP minus as in negative 10% these are historic highs. and the stock market as i predicted is at record highs. and NOW that is is at record highs everyone and their dog is buying. Infection rates are rising and the pandemic is not over. As is documented i had you buy at 2100 in the S+P500 I told you to buy every layer higher. I even published updated constantly a spread sheet telling you how to scale in. And I had you take profits at 3000 S&P500. so we bought the bottom and sold within 10% of the top, See i been at this for 40 years and i admit for the first 5 iI still had me head up my ass. And 40 years of trading has taught me no matter how many ASSHOLES tells you why this time it is different ITS NOT! One cardnial rule applies. When everyone is selling buy and when everyone else is buying sell. Now for a fact we bought when their was blood in the streets and every swing dick and big nippled titties were selling. AND we bought. Now that they are telling you how this time its different: ITS NOT! BUYING ON RECORD HIGHS BETTING ON MORE RECORD HIGHS NO MATTER HOW YOU SLICE AND DICE IT IS STILL BUYING WHEN EVERYONE ELSE IS BUYING AND WILL NEVER WORK!
for the record i am a enthusiastic seller. the recovery is bogus. 25% of businesses that have closed will never reopen and the virus will come back. and painting separation circles on the flOor is a sick joke……..
The fucks are making a asshole out of you again. its cheap to paint lines on the floor and hand out face masks most people do not even put on right. In order to get this to work it requires a major refit. that means 30 micron hepta filters with ultraviolet sterilization and Ozonening the systems in scheduled shutdowns. (guaranteed they are not going to do it. Elevators no matter what you do are death chambers. Sky scrappers need to be torn down. Multi family housing is impossible from the sewer systems to air circulation systems built from the 50″s. Sports arenas, theaters, malls and big box stores can never be made safe. Airplanes, buses and subways are all tubular death devises. Ride share and taxis are impossible to sanitize. Its only as good as the last passenger. reality is disinfectant with bleach and alcohol and Ozone sterilization must be done after each user. Its just not economically feasible. Hotel rooms don’t make me laugh. They cannot get the piss, cum and sweat off the common surfaces. If you want to stop being a idiot take a UV light into your hotel room. Human secretions are florescent. You will be shocked. the room glows! No my friends the world has changed forever.
Bottom line we are not out of the woods yet. Many states are reporting record infections and the hospitals are filling up fast. Texas and South Carolina were the first states to set the captives free and are now reporting record hospitalizations.
So excuse me i am not buying into this rally and i am going to short the shit out of stupidness. when everyone especially millennial’s are buying (in between apologizing to convicted Black drug dealers and assailants for being white privileged) I am selling. Are you going to let them fool you over and over again?