The headlines were just too much for the bulls to defend today. A full day of Covid-19 bad news weighed on the stock market, and with it being a Friday, traders decided that the sidelines might be a good place to be for the time being.
As for the markets, stocks started lower this morning and continued to lose ground as the trading session wore on. By the close, the Dow Jones Industrial Average was down 730 points to finish the day at 25,015. The S&P 500 was down 74 points to close at 3,009. Gold was up $12 to trade at $1,783 per ounce, while oil was down $.59 to trade at $38.13 per barrel WTI.
We have a couple of days left to trade in June, but the month has been uneven to this point. After the collapse in March and the rebound in April and May, June has been a month of trying to figure out just where stock prices should really be given the circumstances. We know that the economy probably doesn’t justify these stock prices in the short run, but the monetary policies that the Fed has enacted leave investors few other options. As we look into July, the bulls will have to deal with what is sure to be a rocky earnings season, and likely difficult virus news. Of course, positive news on vaccines or therapeutics could appear at any moment, and we’ve seen stocks rally on those announcements. Let’s finish up June first and then we’ll prepare for what will likely be a lively July.
Have a nice weekend everyone.