Week In Review: Big Week For Stocks

The market rallied last week even as the number of Covid-19 cases continued to spike higher. Additionally, it was very encouraging to see the bulls show up and defend the 50 DMA line which is the level of support I have outlined several times for you in recent weeks. Going forward, as long that level holds, the bulls are in clear control. Looking forward, we are entering earnings season over the next few weeks. As you can see, it’s never a dull moment on Wall Street.

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Monday-Wednesday’s Action:

Stocks rallied nicely on Monday as the bulls showed up and defended important support for the major averages. JPMorgan JPM, Bank of America BAC, Citi C, and Goldman GS were some of the big banks that said they would maintain their dividends after the Fed’s stress test last week and Wells Fargo said it will cut its dividend. Stocks rallied nicely on Tuesday which was the final day for the month and quarter. It was the best quarter for the market in over 20 years as the major averages all enjoyed big gains. The Dow jumped +17.8% in Q2 which was its best quarter since 1987 when it jumped +21.6%. The S&P 500 had its biggest one-quarter surge since the fourth quarter of 1998, vaulting 20%. Meanwhile, the Nasdaq Composite jumped +30.6% in Q2 2020 which was the best quarterly performance since 1999. Even with these huge moves during the quarter, the Dow & S&P 500 are still negative for the year and the Nasdaq is only up 12.11%. Stocks opened higher but ended mixed on Wednesday after Pfizer reported positive data in its early-stage coronavirus vaccine trial.

Thursday & Friday Action:

Stocks rallied on Thursday after the jobs report beat estimates. The government said a record 4.8 million jobs were created in June which easily beat the Street’s estimate for 2.9 million jobs. Meanwhile, the unemployment rate fell to 11.1% from 13.3% in May. That also beat estimates because economists were expecting a rate of 12.4%, according to Dow Jones. The market was closed on Friday for July 4th. 

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Disclaimer: All our work is for educational/informational purposes only. It is general in nature. No specific investment advice is given.

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