Economic Activity Rebounding Faster Than Anticipated

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as economic activity rebounding faster than anticipated. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

Dow futures rise 100 points as Wall Street tries to add to last week’s rally

U.S. stock futures rose slightly on Sunday night following last week’s sharp gains amid optimism over the economy reopening. Dow Jones Industrial Average traded 108 points higher, or 0.4%. S&P 500 and Nasdaq-100 futures were both up 0.3%. The Dow surged 6.8% last week while the S&P 500 jumped 4.9%.

 

The S&P 500 (SPY) rose +1.20% today. All 11 sectors were positive for the session as shown below in the sector graph. Gains ranged from +4.50% to less than 1%.

The Dow Jones index jumped +461 points (+1.70%) to close at 27,572. The Nasdaq climbed +110 points (+1.13%) to settle at 9,924.

Economic Activity Rebounding Faster Than Anticipated

Stocked finished in the green Monday as the S&P 500 turned positive year to date from the coronavirus lows in March.

Wall Street was also riding high on the back of a surprise surge in U.S. employment. The Labor Department said Friday the economy added 2.5 million jobs in May, a record. Economists polled by Dow Jones had forecast a drop of more than 8 million.

“The 2.5 million rebound in employment last month reverses only a small fraction of the jobs lost since February,” said Michael Pearce, senior U.S. economist at Capital Economics. “But considering we and the consensus had been braced for another large decline, it builds on the signs from some of the other macro data this week that economic activity is rebounding faster and more vigorously than we had anticipated.”

“The stock market is almost looking past Covid and looking forward to the reopening,” said Ryan Detrick, senior market strategist at LPL Financial. “The concerns of another Covid outbreak are real, but the stock market is clearly saying it is much more in tune with the opening of the economy.”

Detrick warned, however, “the market is ripe for a well-deserved break” after its blistering rally off the March lows.

Since March 23, the S&P 500 has rallied more than 47% while the Dow has gained over 50%. Those gains come in large part from expectations of a swift economic recovery.

Key Takeaways…

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P movers (both winners & losers).

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

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6/8/20

S&P 500 Sector Graph

Economic Activity Rebounding Faster Than Anticipated

S&P 500 (SPY)

Economic Activity Rebounding Faster Than Anticipated

Communication Services (XLC)

Economic Activity Rebounding Faster Than Anticipated

Consumer Discretionary (XLY)

Economic Activity Rebounding Faster Than Anticipated

Consumer Staples (XLP)

Economic Activity Rebounding Faster Than Anticipated

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Energy (XLE)

Economic Activity Rebounding Faster Than Anticipated

Financials (XLF)

Economic Activity Rebounding Faster Than Anticipated

Real Estate (XLRE)

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

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Technology (XLK)

Economic Activity Rebounding Faster Than Anticipated

Utilities (XLU)

S&P 500 Sector Heat Map

 

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