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Afternoon Note

Big Tech Leading

By Charles Payne, CEO & Principal Analyst
5/11/2020 1:14 PM

Reports of a second wave of Covid-19 in Germany and South Korea led to early selling. However, there has not be any true selling conviction or fear in today’s session. While all the major indices began the day in the red, the Nasdaq turned positive early on. The S&P 500 turned green while Governor Cuomo of New York was speaking and said that on May 15 certain low risk recreational activities as well as businesses such as gardening and landscaping, construction and manufacturing can begin to reopen in certain regions.  

FAANG names are all trading higher and big names in Technology also helped the S&P 500 reverse upward. Healthcare and Technology are the two best performing sectors while Materials lag. 

S&P 500 Index

+0.61

 

Communication Services (XLC)

 

-0.03%

Consumer Discretionary (XLY)

+0.10%

 

Consumer Staples (XLP)

+0.22%

 

Energy (XLE)

 

-0.94%

Financials (XLF)

 

-1.66%

Health Care (XLV)

+1.13%

 

Industrials (XLI)

 

-1.00%

Materials (XLB)

 

-1.79%

Real Estate (XLRE)

 

-0.09%

Technology (XLK)

+0.49%

 

Utilities (XLU)

 

-0.81

While decliners are outpacing advancers, breadth is positive as are the new 52-week highs.

Issues:

NYSE

NASDAQ

Advancing

964

1,421

Declining

1,938

1,724

52 Week High

25

91

52 Week Low

13

14

Advancing

660.59M

1.23B

Declining

1.48B

653.30M

 

Market at Crossroads

Last week, I pointed out the NASDAQ Composite was on the verge of going positive for 2020. It happened, and other major equity indices also continue to claw back losses that rewrote the record books.

There is enough momentum for the S&P 500 to recover this summer, which would not be shocking by historic standards. Bear market declines of 34% or less have seen rapid recoveries.

 
Oil
 
Saudi Arabia announced that it will cut production by an additional 1 million barrels per day beginning on June 1.  This coupled with cuts already agreed to will take down Saudi’s total production down by 4.8 million barrels per day to 7.492 million. The news sent oil higher initially, but since then, WTI has pulled back and is down 1.58% to $24.33.

 


Comments
Hope you are doing well and not under the weather, we miss you.

Paula Holt on 5/11/2020 6:18:41 PM
 

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