The major indices are all trading slightly in the green at midday, despite a bearish start to the week, with the nationwide protests at the center of attention.
Despite Nationwide Protests, Investors Focus On The Positive COVID News
26 states called in the National Guard due to protests, but investors focused on the positive COVID-related news, which drove the morning bounce on Wall Street. The reopening push continues to be successful in Asia, Europe, and the U.S. and even though the situation in Latin America and India is still concerning, the number of new cases ticked lower globally after hitting another record high this weekend.
In economic news, the ISM manufacturing PMI came in at 43.1, a tad below the consensus estimate, but the key measure still bounced back compared to last month’s decade-long low. Industrials have been holding up well despite the slight miss, even as the U.S.-China tensions continue to weigh on the sector. China reportedly halted some agricultural imports from the U.S., in reaction to last week’s U.S steps, and some analysts fear that the “phase one” trade deal could still be in jeopardy even in light of President Trump’s surprisingly soft stance.
Dow: 25,390, + 7 or 0.03%
S&P 500: 3,031, + 2 or 0.1%
Nasdaq: 9,520, + 30 or 0.3%
Russell 2000: 1,410, + 16 or 1.1%
Market breadth has been relatively strong this morning, with advancing issues outnumbering decliners by a 4-to-1 ratio on the NYSE at midday. Only 1 stock hit a new 52-week low on the NYSE and the Nasdaq, while 64 stocks hit new 52-week highs. The major indices have been trading above their daily VWAPs (Volume-Weighted Average Price) throughout the morning session, pointing to intraday buying pressure. Real estate stocks gained the most ground in early trading, with financials only slightly lagging behind and other cyclical issues also showing relative strength, which is a positive sign or the rest of the day. Stay tuned!
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