Market Indexes Shift Back Toward Bullishness
The first trading day of a new week — and first day of summer — was a very good one, finding attractive value across the board in stocks that had been beaten up over the past few days. At its session high, the Dow was +618 points; it closed +586, +1.76% — and all 30 stocks in the index were up on the day.
The S&P 500 almost kept pace with all its sectors in the green, +1.40% Monday, with the Nasdaq lagging but gaining at the close: +0.79%. The Russell 2000 took the brass ring, however: +2.16%.
That said, all indexes are still down over the past five trading sessions: the Dow -1.15%, the S&P 500 -0.58%, the Nasdaq closest to breakeven at -0.038%, and the Russell -1.65%. This is why it’s easy to surmise the value plays made for easy pickings today.
In fact, the Dow put in its best single-day performance in more than three months. Of these indexes, only the S&P 500 is still positive for June. Might we expect this to change over the course of the week?
Bitcoin finished down 7.7% on the day, as the Chinese government takes hold of crypto mining in its Sichuan province and elsewhere. The 10-year bond yield is back beneath 1.5% again. So as the Great Reopening continues, might market participants operate with the certainty that equities are the place to invest at this time? Perhaps we’ll wait to see how New & Existing Home Sales and PMI Manufacturing & Services fare over the next couple days.
Day One of Amazon AMZN Prime Day was decent, averaging $47 per order so far (though households often placed more than one order today). However, shares were down today nearly 1% (though still +2% over the past five trading days), perhaps on Prime Day’s novelty wearing off. There are also relative low barriers to entry for Amazon competitors like Target TGT and Walmart WMT to offer temporary sale prices and compete for consumers today and tomorrow.
Though today was a boon for equity investors, we’re still making our way through a less-than-taut reopening period: inflation fears in some places and actualized in others, a slightly volatile “back to work” procession and, of course, pockets of the U.S. with woefully low Covid vaccination rates — leading to new outbreaks of the coronavirus we’re all ready to say goodbye forever to — make for bumpy pathways at present. But we’re still going forward, and today was all downhill!
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