The bulls stepped back in today and took charge of the proceedings, much like they have for the last week and a half. We continue to see the flattening of the virus curve, and talk has begun to turn to when we can start to open the country back up. But, perhaps more than anything, the bulls appear emboldened by the flood of liquidity that the Federal Reserve is providing.
For the day, the Dow Jones Industrial Average was up 558 points to close at 23,949. The S&P 500 was up 84 points to finish the day at 2,846. Gold was down $4 to trade at $1,757 per ounce, while oil was down $1.63 to trade at $20.78 per barrel WTI.
We are entering earnings season with the banks first up to the plate. J P Morgan and Wells Fargo delivered today and we’ll see Bank of America and Citi tomorrow. It can’t be any easy time for banks, that is known, but we’ll see if the price of their shares have already discounted that. Going forward, it’s not only the banks that will be reporting difficult quarters. Other than Amazon, Costco, Walmart, Clorox, Kimberly Clark and selected pharmaceutical companies, it is likely going to be a rough few weeks for corporate earnings and company guidance. You might ask yourself, then why are stocks going up? Well, besides the Fed overflowing the punch bowl, the difficulties in the short run are known. What is not known is how long all of this will last. That’s the wild card at the moment. It appears that the markets are hopeful. I’ll stick with, it’s just too early to call.
Have a nice evening everyone.