Afternoon Note
By Charles Payne, CEO & Principal Analyst
8/20/2020 1:29 PM
The major indices made a comeback after Johnson & Johnson (JNJ) reported that they plan to launch, by late September, what could become the largest clinical trial of coronavirus vaccine to date. The firm will enlist up to 60k people to test whether its experimental shot safely protects from COVID-19. The Dow and S&P 500 are almost flat, while Nasdaq is up 0.55%.
The energy sector is the weakest performer after OPEC said that the oil market’s recovery has been slower than expected. Real estate is the best performer, even after Crown Castle (CCI) received a downgrade today.
|
S&P 500 Index |
+0.09% |
|
|
Communication Services (XLC) |
+0.56% |
|
|
Consumer Discretionary (XLY) |
-0.10% |
|
|
Consumer Staples (XLP) |
-0.14% |
|
|
Energy (XLE) |
-1.65% |
|
|
Financials (XLF) |
-0.69% |
|
|
Health Care (XLV) |
-0.22% |
|
|
Industrials (XLI) |
-0.46% |
|
|
Materials (XLB) |
-0.59% |
|
|
Real Estate (XLRE) |
+1.37% |
|
|
Technology (XLK) |
+0.71% |
|
|
Utilities (XLU) |
-0.33% |
Breadth is negative today and down volume exceeds up on the NYSE and Nasdaq. New highs however are far outpacing the new lows.
|
Issues: |
NYSE |
NASDAQ |
|
Advancing |
1,127 |
1,201 |
|
Declining |
1,831 |
2,063 |
|
Issues at: |
||
|
52 Week High |
35 |
53 |
|
52 Week Low |
14 |
20 |
|
Volume: |
||
|
Advancing |
479.46M |
1.28B |
|
Declining |
1.10B |
794.78M |
I think the upward bias story in the market is still intact. The market needs; or at least wants, more from the Federal Reserve and Federal Government.
Let's keep our powder dry.
| Comments |
| Hi Charles, is there an index or metric that measures the amount of cash on the sidelines for investors and companies. Interested in the timing of when investors and companies are converting their cash into investments. Keep up the great work, we have learned a lot from you over the years. Wade Engelbrecht on 8/20/2020 8:26:59 PM |
| Hello Wade
There are lots of services out there that monitor that kind of stuff - I like work from Lipper and ICI but it's always a guesstimate. Right now the number is 8 trillion dollars.
5 trillion in money markets (25% individuals)2 trillion Private equity trillion corporate cash
A lot of that cash and funds in bonds will find its ways into stocks although probably more into emerging markets because Wall Street loves the playbook of buying under performers while whining about missing the winners. CP Charles Payne on 8/20/2020 10:20:06 PM |
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