Monday, August 24, 2020 – DIA 283.18 +1.39%, QQQ 283.63 +.62%, SPY 342.92 +1.01%
The Chicago Fed index came in at 1.18 vs. a revised 5.5 in the last reading. A level above zero shows expansion. The news on the health front concerning plasma therapy for COVID-19 caught traders’ attention lifting hard-hit shares of American Airlines (AAL) 13.44 +10.53%, Carnival Cruise Lines (CCL) 16.14 +10.17%, United Airlines (UAL) 36.32 +9.93%. The committee that determines the components of the Dow Jones Industrial Averages announced changes to the index after the close. Salesforce (CRM), Amgen (AMGN), Honeywell (HON) will be added, Pfizer (PFE), Raytheon (RTX), ExxonMobil (XOM) will be dropped from the index.

Tuesday, August 25, 2020 – DIA 282-.62 -.20%, QQQ 285.86 +.79%, SPY 344.12 +.35%
Consumer Confidence came in at 84.8 versus an expected 93. New Home Sales came in at an annualized 901k versus an expected 790K. Housing demand numbers have been strong in recent months. The Dow Jones Industrial Average underperformed as index traders and portfolio managers started rolling out of ExxonMobil (XOM), Pfizer (PFE), and Raytheon (RTX) and into the new additions Salesforce (CRM), Amgen (AMGN), and Honeywell (HON). Gap stores (GPS) 17.11 + 10.43% was the clear standout on the day as Citigroup upgraded the stock.

Wednesday, August 26, 2020 – DIA 283.43 +.29%, QQQ 291.96 +2.13%, SPY 347.57 1.00%
Durable Goods came in at 11.2%- nearly double the expected 4.8%, with Core Goods orders at 1.9% vs. 1.3%- for a 3rd straight month of gains. Salesforce (CRM) +26.04% was the standout of the day, a clear leader of big-cap technology. other big winners were Netflix (NFLX) +11.16%, Workday (WDAY) +10.10%, Adobe (ADBE) +9.1%. On the day, the overall market was less than confirming of these headline standouts. Divergence.

Thursday, August 27, 2020 – DIA 285.04 +.57%, QQQ 291.05 -.31%, SPY 348.33 +.22%
Initial jobless claims came in slightly worse than expected 1.01 million. Continuing claims (state) came down to 14.54 mm down from 14.76 mm. State and Federal continuing claims declined to 27.02 million- down from 28.06 million. GDP came in better than expected with a negative print of –31.7% annualized versus the expected -32.5%. Abbot Labs (ABT) + 7.85% was a standout in the S&P 500, as the FDA approved its 15-minute, $5 coronavirus test. The stock was further buoyed when The USA Govt also placed huge initial orders for the ABT rapid results offering. Quest Diagnostics (DGX) -7%. Moderna (MRNA) announced that its COVID-19 vaccine showed efficacy in older people. Travel & leisure stocks popped on the optimism: Live Nation (LYV) +8.78%, Royal Caribbean (RCL) +5.98%, United Airlines (UAL) +5.75%. S&P 500 (SPY) had its 5th straight record close.

Friday, August 28, 2020 – DIA 286.7 +.58%, QQQ 292.53 +.51%, SPY 350.58 +.65%
Chicago PMI came in light of expectations 51.2 versus 52 exp. Michigan consumer Sentiment was above expectations 74.1 versus 72.8. Travel & Leisure stocks continued the previous day’s outperformance. Carnival Cruise Line (CCL) 17.21 +6.76%, Norwegian (NCLH) 17.69 +6.25%, WYNN Resorts (WYNN) 91.55 +5.81%. On the downside, Tractor Supply (TSCO) 146.91 -2.72% a market leader was down on the day. The shares had recently been downgraded by Edward Jones.

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