I hope everyone had a nice 4th of July weekend. It appears that market participants came back to work today feeling pretty good about things. Stocks, led by the usual suspects Apple, Amazon and Microsoft, opened higher and basically held the gains for the entire trading session. What is a little discomforting is that the same few stocks go up every day and continue to drag the market averages higher with them, as they are heavily weighted in those market indexes. Nevertheless, the bulls are flush with Federal Reserve cash and they continue to lay down their bets on the big winners.
For the day, the Dow Jones Industrial Average was up 459 points to finish the day at 26,287. The S&P 500 was up 49 points to close at 3,179. Gold was up $4 to trade at $1,794 per ounce, while oil was down $.08 to trade at $40.57 per barrel WTI.
Again, you may wonder why stocks are up when the folks on TV show us nothing but death and destruction in the streets of America, and Covid-19 seems to be gaining strength. Well, I guess investors have come to the conclusion that there is nowhere else to go with investable monies. Ironic, isn’t it? Main Street doesn’t seem to be getting any better, but Wall Street sure is. Sometimes things are hard to explain.
Have a nice evening everyone.