Possible Reopening of Economy Sparks Rally

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as possible reopening of economy sparks rally. 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:

US stock futures rise slightly as Wall Street weighs the prospects of re-opening the economy

Stocks futures traded slightly higheron Sunday night as investors assessed the possibility of re-opening the global economy after the coronavirus outbreak forced a near-complete shutdown of all economic activity. Dow Jones Industrial Average futures were up 76 points, or 0.3%. S&P 500 and Nasdaq 100 futures were up 0.3% and 0.4%, respectively.

The S&P 500 (SPY) rose +1.47% today. All 11 sectors finished in the green as shown in the sector graph below. Gains ranged from +3.40% to less than 1%, check the sector graph for specifics.

The Dow Jones index jumped +358 points (+1.51%) to close at 24,133. The Nasdaq climbed +95 points (+1.11%) to settle at 8,730.

Possible Reopening of Economy Sparks Rally

Stocks found higher ground Monday as investors applauded the possibilities of the US economy slowly re-opening.

Monday’s gains put the S&P 500 on pace for its biggest one-month gain since 1987 with an 11.4% surge in April. The Dow is up 10.1% month to date; that would be its best monthly performance since 2002.

States including Alaska, Georgia, South Carolina, Tennessee and Texas are beginning to allow restaurants and other establishments to serve customers. Ohio Gov. Mike DeWine said consumer retail and services can start reopening on May 12.

New York Gov. Andrew Cuomo said Sunday the state plans to reopen its economy in phases. The first phase, Cuomo said, would involve New York’s construction and manufacturing sectors. As part of the second phase, businesses will need to design plans for a reopening that include social distancing practices and having personal protective equipment available. Cuomo also noted that coronavirus-related hospitalizations have fallen for 14 days and that virus deaths in New York hit a near one-month low.

Still, coronavirus shelter-in-place orders and social distancing guidelines remain Wall Street’s No. 1 concern as the rules keep thousands of businesses closed. Officials have confirmed nearly 3 million Covid-19 cases worldwide with over 900,000 in the U.S., according to data from Johns Hopkins.

The outbreak, and subsequent business closures, sparked a wave of job losses. Data from the Labor Department show that more than 26 million people have filed for unemployment benefits over the past five weeks.

Key Takeaways…

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P 500 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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S&P 500 Sector Graph

Possible Reopening of Economy Sparks Rally

S&P 500 (SPY)

Possible Reopening of Economy Sparks Rally

Communication Services (XLC)

Possible Reopening of Economy Sparks Rally

Consumer Discretionary (XLY)

Possible Reopening of Economy Sparks Rally

Consumer Staples (XLP)

Possible Reopening of Economy Sparks Rally

Energy (XLE)

Possible Reopening of Economy Sparks Rally

Episode 1: Basic Investment Strategy – Simply Stock Info: The Podcast

Simply Stock Info: The Podcast Episode 1: Basic Investment Strategy Episode 1 goes over my basic investment strategy for individual investors (from years of watching and learning from CNBC).

Financials (XLF)

Possible Reopening of Economy Sparks Rally

Real Estate (XLRE)

Possible Reopening of Economy Sparks Rally

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Episode 2: Building a Diversified Portfolio – Simply Stock Info: The Podcast

Simply Stock Info: The Podcast Episode 2: Building a Diversified Portfolio In this episode, I go over 5 stocks to build a diversified portfolio on. These are 5 stocks to hold for the long term in a retirement account such as a Roth or traditional IRA account.

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

 

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