Before The Bell
The stock market, which fashioned a strong May, has entered June on a further up note. Thus, after two sessions, the major equity averages have posted strong across-the-board gains, led by the Dow Jones Industrial Average. The blue chip composite, which, as noted, has led the way higher over the past two trading days, roared out to an early advance of some 200 points within the first 90 minutes. Optimism about the economy reopening once more fueled the early advance in not only the blue chips, but the S&P 500 Index as well.
This strong performance came in spite of warnings from health officials that mass gatherings across the country, such we have seen the past week following the murder of George Floyd, an unarmed black man in Minneapolis, could further spread the coronavirus. Stocks also made headway even as so much of the nation was now being affected by the marches and protests. As for COVID-19, U.S. deaths now surpass 107,000, and total cases in our country exceed 1.8 million.
Meanwhile, stocks moved strongly higher yesterday, as the pandemic lockdowns continued to ease. Among the beneficiaries in the latest day were shares of shopping center and mall operators. Some larger technology issues faltered in the early going, however, a setback that initially put the NASDAQ moderately into the red. That decline would reverse in the afternoon, when the averages would rally into the close. Among individual issues in the limelight were shares of The Home Depot (HD), which added nicely to the Dow's final advance.
At the close, the Dow Industrials, with a late surge, would finish ahead by 268 points. That was the composite's second gain in as many sessions. The S&P 500 would add 25 points, a somewhat lesser percentage increase. The NASDAQ, weighed down by weakness in tech, was in the red for about half the session, strengthened late in the day, too, climbing 56 points in the end. That was the NASDAQ's sixth straight advance and represented its highest close since late February.
Also rallying into the late afternoon was oil, with that key commodity reaching its highest level since early March, as easing lockdowns and an upcoming OPEC meeting fueled optimism on this front as well. Brent crude, in fact, approached $40 a barrel on those upbeat expectations.
Meantime, many more stocks were higher on the Big Board than not and all 10 of the S&P groups rose in price yesterday. All in all, it was a broad-based upsurge in stock prices.
Looking ahead to a new day and after some initial choppiness in the futures early last evening, the stock market looks as though it will start the new day once more to the upside.
— Harvey S. Katz, CFA
At the time of this article's writing, the author did not have positions in any of the companies mentioned.
