U.S. Stocks Open Weekly Trade On The Bull
Shain Vernier • 1 min read
U.S. stocks are off and running today, led by a nearly 2% gain in the Dow Jones Industrial Average. At the halfway point of the Wall Street session, the DJIA DOW (+425), S&P 500 SPX (+35), and NASDAQ (+98) are all in the green. For the time being, investors have put rising COVID-19 infections aside, choosing to focus on the positives surrounding the economic restart.
On the economic news front, a decent rebound in home sales has breathed new life into the markets. Here’s a quick look at this morning’s highlights:
Event Actual Projected Previous
Pending Home Sales (YoY, May) -5.1% -44.6% -33.8%
Dallas FED Manufacturing Index (June) -6.1 -59.0 -49.2
3-Month Bill Auction 0.150% NA 0.155%
6-Month Bill Auction 0.165% NA 0.175%
All in all, today’s numbers turned out to be extremely positive. The housing and manufacturing sectors greatly outperformed expectations, with bond yields falling. In short, investors are cautiously optimistic about stocks and the pending COVID-19 economic recovery.
Stocks Headed North, USD/CHF Holds Firm
Amid today’s steep rally, safe-havens have struggled to find solid ground. For the USD/CHF, values are back above 0.9500 and looking for more.
Here are two levels to watch in the USD/CHF as the week wears on:
- Resistance(1): Weekly SMA, 0.9623
- Support(1): 62% Retracement, 0.9457
Overview: For the time being, sentiment is positive on Wall Street. “Risk-on” is the story of the day and safe havens are taking a back seat. However, the rally may turn out to be short-lived. It appears that the “second wave” of COVID-19 is underway. Cases have now topped 10 million worldwide, with Florida, Texas, California, and Arizona rolling back reopening plans. While there is much to be positive about for U.S. stocks, the coronavirus pandemic continues to play greatly into valuations.