Bear Growls

News/Flows: Weekly Market Roundup

Monday June 22, 2020 - DJIA 26024.96 +1.1%, NDX 10,130.33 +1.22%, SPX 3041.31 +. 65%
The major indices gapped higher but stayed in the previous session’s ranges for the most part. NYSE breadth continued to be negative for most of the day, Financials, and real estate remained weak, while big-cap technology continued to outperform. Given the current economic environment, managers appear to be willing to pay up for companies that have growth profiles.. The COVID-19 news flow remained in focus once again took center stage.
We saw renewed negative sentiment in financials, real estate, airlines, hospitality, and cruise ships. The U.S. announced visa restrictions for many high-tech workers adding to the mix of issues to digest and ascertain any possible tangible impact.
Keep an eye on the charts of commodities, as there has been a major recovery in prices of oil and copper since April.

Tuesday, June 23, 2020 – DJIA 26,156.10 +.5%, NDX 10,209.82 +1.74% (All Time High), SPX 3131.29 +.43%
After the $50 Billion VMware spinoff announcement from Dell, stocks gapped higher with initial follow through but as the session progressed all three indices closed well off their session highs leaving bearish looking topping tails. (It’s not the news that is important, it is the reaction to the news). The NDX index outperformed but left a highly notable bearish tail, while the SPX completed the 3rd topping tail in six trading days. The DJIA had a similar pattern, but a more defined downtrend in that same six-day period. News flow on COVID-19 infection rates continued. Virus rates hit record levels in many southern and western states (this in a period where virologists had expected a seasonal drop in cases). Keep an eye not only on infection rates but on mortality rates.

Wednesday, June 24, 2020 – DJIA 25445.94 -2.7%, NDX 10002.7 -2.03%, SPX 3050.33 -2.59%
With follow-through from the previous session, stocks opened lower and continued to sell off as more news of the virus continued to be in focus. Reports of acceleration in infection rates as well as, canceled reopenings of theme parks and other businesses weighed on share prices.

Thursday, June 25, 2020 – DJIA 25745.6 + 1.2%, NDX 10101.83 +.98%, SPX 3083.76 +1.1%
After early morning weakness, stocks ended up on the day but well within the previous day’s trading range. Reports came during the day that up to 20 million people in the U.S. might have gotten the COVID-19 virus. After the close, the Federal Reserve COVID-19 related stress test was released sinking several big bank shares in the aftermarket. Also after the close, Nike stated that sales tumbled 38% in the quarter and Macy’s announced 25k layoffs in corporate dept in headcount. Keep an eye out for other retail names that may have a similar situation developing..As earnings are released, we will start to see the real effect the shutdown has had on the bottom line, as well as fresh guidance.

Friday, June 26, 2020 – DJIA 25015.55 -2.8%, NDX9849.36 -2.5%, SPX 3009.05 -2.46%
Again, stock markets were under pressure from worsening COVID-19 infection rates. Trade tensions were also again in the spotlight, as Beijing threatened not to comply with the recent phase one trade deal,l which would affect the farm belt.

The Look ahead for the week of June 29 - July 3
10 AM Pending Home sales
10:30 AM Dallas Fed Manufacturing Survey
11:00 AM Weekly Agricultural Exports
3 PM Fed- Williams speaks
Tuesday -End of Month & Quarter!
8:55 AM Johnson Redbook retail
9:00 AM Case-Schiller Housing Report
9:45 AM Chicago Purchasing Managers index
10 AM Hour Fauci at the Senate
10 AM Consumer Confidence
11 AM Fed –Williams speaks on CB policy in the era of COVID-19
12:30 PM Powell and Mnuchin speak to a House panel
4:30 PM API petroleum and distillate stats.
7 AM Mortgage Applications
7:30 AM Challenger job cuts
8:15 AM ADP Employment report
9:45 AM Markit Manufacturing
10:00 AM ISM Manufacturing
2 pm FOMC Minutes
8:30 AM Nonfarm Payrolls & Weekly Jobless Claims
10:00 AM Durable Goods orders
10:30 AM Nat Gas Inv.
1:00 PM Baker Hughes Rig Count
Friday- Independence Day (Markets Closed) 
🎇Happy 4th of July!!! 🎆

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