Late Day Selloff

Friends

Stocks were drifting along, minding their own business when a mini late day selloff interrupted things. The usual suspects, Apple, Google, Amazon etc., had been keeping stocks in positive territory for most of the trading session, but they also gave up some gains late in the day. We heard from Disney last night and it wasn’t good. They really don’t know when parks will get back open and who will come, when movies will be able to be made, and when sports (ESPN) will start up again. In the meantime they are suspending their dividend in a move to protect the balance sheet.

As for today, by the close the Dow Jones Industrial Average was down 218 points to finish the day at 23,664. The S&P 500 was down 20 points to close at 2,848. Gold was down $19 to trade at $1,690 per ounce, while oil was down $.47 to trade at $24.09 per barrel WTI.

For the most part, the extreme volatility that we saw back in March has somewhat dissipated, so for those who were unsettled by extreme swings, that is good news. Employment news, such as today’s terrible ADP private payroll number, doesn’t rattle markets because it is already known. The numbers are huge and unsettling, but not a surprise. So, maybe we have settled into a drifting market that is waiting to see how the great reopening of the economy goes. Stay tuned.

Have a nice evening everyone.

Jim

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