New Week, Who Knew…After last week’s minor stumble whence the S&P ended down 50bps (ish), US indices reinstated the move higher today, erasing last week’s move entirely (thus far). Aside from some earnings, there is no clear reason for today’s chosen path, especially since nothing has really changed. China tensions are still looming and rising coronavirus infections (Oz, China, HK) are in the headlines, giving the doves some added expectations for the Fed’s message later this week. Also, the $1T stimulus package is still being held up in lack of communication land, though Kudlow has already mentioned a $1200 check and reducing the unemployment bonus down to $200 from $600. The main support for today’s strength is tech, which is back in investor’s good graces. Apple is +2%, despite being removed from JP Morgan’s focus list, followed closely by it conglomerate companions – F, A, N and G. As mentioned, we have The Fed this week, as well as China PMI and US Q2 GDP. Not to mention, a cool 167 S&P names reporting just in case you need something to do.
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