Nasdaq Has Three Day Winning Streak

The market understandably lost a bit of its excitement over the three-day Easter weekend, but the major indices still came well off their lows of the session on Monday. In fact, the NASDAQ (QQQ) recovered so much that it crossed into the plus side in the final hour and now has a three day winning streak.

The indices are coming off one of their best weeks in years, thanks to slowing coronavirus cases and an unprecedented amount of support from the Fed. The four-day week saw surges of more than 12% for the Dow (DIA) and S&P (SPY) each, along with a more than 10% advance for the NASDAQ.

Such an epic rally naturally has investors concerned that the market is getting a little too cocky, especially since the economy is still locked down. The session started in the red and continued to fall for the first couple hours before getting its act together. The Dow cut its more than 600-point plunge in half and finished with a loss of ‘only’ 1.39% (or about 328 points) to 23,390.77. The S&P also saw a nice recovery to finish off by 1.01% to 2761.63.

But the NASDAQ’s recovery was a lot better than just “nice”. The index actually closed in the green for a third consecutive session. We haven’t seen that since the coronavirus really took hold. It rose 0.48% (or nearly 39 points) Monday to 8192.42. The chips had good performances, as well as a few of the FAANGs like Netflix (NFLX) +7% and Amazon (AMZN), +6.2%.

We continued to get good news on the coronavirus spread, as New York’s governor said the worst was over. The state has seen the most cases of the sickness in the country, and the U.S. has the most cases in the world. Hard-hit European countries have also been enjoying a slowing of the spread, including Italy. We’ve been waiting for this kind of good news for a long time, so it’s no wonder people are talking about the timeline for re-opening the country. But investors know that’s easier said than done given how unpredictable things still are.

We’ll get some idea of the economic impact as earnings season starts this week. This quarter’s numbers will only partially take the coronavirus toll into account, but the market will be watching the guidances. Many outlooks have already been pulled or cut.

The big banks take up a good amount of space early in the season. JPMorgan (JPM) and Wells Fargo (WFC) report today. Johnson & Johnson (JNJ) also goes to the plate. Meanwhile, Wednesday will see reports from Goldman Sachs (GS), Morgan Stanley (MS), Bank of America (BAC), Citigroup (C) and also UnitedHealth (UNH).

Get ready for another busy week! 

Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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