To print this post
US Stock Markets Ended May 29, 2020
Equities moved higher for the week as economic activity starts to improve, and more states and businesses continue to reopen. The largest gains were posted by some of the past laggards as the rebound has rotated to the areas of the market that have been hit hardest, including small-caps, cyclicals and value stocks. The economy is starting to show some green shoots with durable goods orders falling less-than-expected and new home sales handily beating expectations. In addition, personal income rose by 10.5% as measures by the federal government have helped buoy the consumer through the current crisis. Corporate news included several discretionary stocks reporting results and updates from bellwethers at virtual conferences. Toll Brothers Inc. reported a 13% year-over-year gain in deposits for new homes in May, which tends to be a gauge of future demand. Shares of Workday Inc., which sells software in the cloud to help large corporations with their human capital management, gained over 7% following earnings as business activity has increased markedly versus four weeks ago and backlog remained strong. Jamie Dimon, CEO of JPMorgan Chase & Co., sent banks surging after commenting that "you could see a fairly rapid recovery". Looking ahead, the path of reopening different states, and tensions between China and the U.S. will be closely watched by investors. Next week's unemployment report will also be closely observed, which is predicted to show a 19.6% jobless rate. The rally in stocks, which has baffled many, could continue as markets tend to start to ratchet higher after data starts to bottom.
Monday, June 1, 2020 @ 8:37 AM
These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.