Don’t look now, but the S&P 500 has now posted its longest winning streak in 16 months — up for the 7th straight day, and within a percentage point of new all-time highs. The Dow is also up for its 7th trading day in a row, closing up a healthy 358 points, or +1.3%. The Nasdaq was the only major index to close in the red, now back below the 11K mark set last week for the first time.
Again, we’re not looking at a lot of data that sustains such bullishness — other than that equities are still the best game in town. You don’t want to go to cash with the dollar so weak, gold is up over $2000 per ounce and cyber-currencies still contain plenty of unknowns. Yet when we see stocks like Royal Caribbean RCL and Wynn Resorts WYNN up 10% and United Airlines +9%, it does give us pause — at what point will these companies see meaningful bookings that help them gain traction going forward? Probably not for some time yet.
Energy rose 3% on the day’s session, while Industrials gained 2.4% and Materials were up 1%. This helps dispel the notion that only a handful of tech stocks are driving the bus of the “post-pandemic” bull rally. In fact, tech stocks were down 0.33% Monday, as were Healthcare companies. InteractiveCorp IAC has announced it has taken a major stake in MGM MGM, in what it calls a “once in a lifetime opportunity,” again accenting the bullishness in Leisure stocks that investors clearly believe will take off once the coronavirus crisis is behind us.
The fact of the matter is, investment necessarily exists, and on a minute-by-minute basis. Until there is somewhere else more viable than U.S. stocks — although countries that have proven to have done a better job dealing with the pandemic may be more actively considered as economies from Asia to Europe continue to reopen and produce and provide — then we may see our current situation continue. Perhaps we’re dealing in bubble territory, perhaps the more hopeful scenarios regarding a COVID vaccine will come to fruition, at which point you’d be foolish not to have taken advantage of it.
At this point, we’re more wary about the bull market, but cannot deny its continued success. Will the S&P 500 feel resistance around these all-time highs it keeps moving further toward, as the Nasdaq seems to have around this 11K mark? Perhaps, although gut feelings are not the same thing as investment strategies.
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August 11, 2020 at 04:48AM
https://finance.yahoo.com/news/dow-p-500-gain-again-214809178.html
Dow, S&P 500 Gain Again; Nasdaq Slightly in the Red - Yahoo Finance
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