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TODAY WAS A GOOD DAY
*Plays Ice Cube, lights joint*
All three US market indices had themselves a Wednesday, spending almost the entire trading day in the green. Investors were hopeful after fan-favorite Dr. Fauci said the US has “turned the corner” in its battle with coronavirus.
Highs and lows
The Dow closed above 23k for the first time since March 13th, while the Nasdaq hit 8k, its highest close since March 10th. The S&P had it’s second positive close in the last three days. Things are looking up, huh?
Not quite. All three major indices are still WELL on track for their worst year since 2008. Remember that? At least we could go outside.
Could have seen it coming
On top of that good news from the hero we need, not the one we deserve (read: Dr. Fauci), Bernie Sanders announced he’d be “suspending” his campaign for the Democratic presidential bid. In totally unrelated news, health insurance and Big Pharma companies all surged on the day, helping spur markets.
Oil also sprinkled on some optimism. Apparently, the Oil Minister of Algeria believes that OPEC+ is prepared to consider a massive cut to production, in the range of 10M barrels per day. The West Texas Intermediate crude price jumped nearly 12% on the news, before closing up 6.18%.
The bottom line...
Despite the markets’ pleasant hump day, futures point to a lackluster open today. But that could be the best-case scenario, as another set of weekly jobless claims are ready to drop which. There's reason to believe the report could be a real Buzz Killington considering many economists think April could take the jobless claim rate into the teens, up from 4.4% in March.
And the big picture doesn't look so rosy either. Some (read: a sh*t ton of) analysts believe recent rallies may be little more than a dead cat bounce. One school of thought is that investors are still in the denial phase (wait, are there 12 steps to this?) and that upcoming economic news and earnings szn could provide a fresh dose of reality.
Bottom line? There are more than a few smart people who think we haven't seen the market bottom yet.
Dow retakes 23,000, S&P 500 jumps 3%, Sanders sparks surge [CNBC]
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