Stocks tacked on another round of healthy gains at the open this morning, but as the trading session wore on, the bulls seemed to run out of firepower. Some of the stocks that had been leading the way in the recent advance began to see a little “profit” taking. The good news might be that we did see a little rotation from the somewhat overbought big tech names to some of the more beleaguered sectors like banks, oils, and deep cyclicals. A broader move higher would be welcome as opposed to investors continuously piling into a few big cap names.
For the day, the Dow Jones Industrial Average was down 26 points to finish the day at 22,653. The S&P 500 was down 4 points to close at 2,658. Gold was down $10 to trade at $1,684 per ounce, while oil was down $1.68 to trade at $24.37 per barrel WTI.
It was a somewhat quiet day on the medical front, as we wait for more news about treatment drugs and continue to monitor how well or not social distancing is working. In New York it does appear that mitigation is starting to help flatten the curve, but we are still waiting to see if hot spots begin to appear in other parts of the country. As we have said, this is going to take some time to play out, and there will be days when we are encouraged like yesterday, and then there will be days when we will be very discouraged. First we have to get clarity on the medical situation, and then we will begin to deal with the economy, and it appears there is a long way to go on both. Stay strong. We’ll continue to keep you updated.
Have a nice evening everyone.