Day Traders Diary

6/8/20

Another strong start to the week as the S&P 500 moved into the green for the year wiping out the losses from the coronavirus pandemic. Stocks finished the day at their session highs with the S&P 500 jumping 1.2%, or 38.46 points, to 3,232.39. The Dow Jones Industrial Average traded up 461 points or 1.7%, to 27,572 trimming its 2020 losses to 3.3%. The Nasdaq Composite was up a percent to 9,924 hitting a fresh record high and bringing its year-to-date gains to 10.6%. The S&P 500 jumping 1.2%, or 38 points, to 3,232. The equity benchmark turned positive for the year in the final moments of Monday and has now bounced more than 47% off its March low. At one point this year, the S&P 500 was down more than 30%. It's now positive for 2020 by 0.05%.

There were few macro developments to alter the market's bullish trend, allowing investors to continue to pile into beaten-up stocks that have more upside potential with a ramp-up in economic activity. Boeing rose 12%, lifting the other economically sensitive sectors like the airlines, cruise lines, energy, and retailers.

All 11 S&P 500 sectors closed higher. The energy sector set the performance pace with a 4.3% gain, followed by the utilities and real estate. The materials sector eked out a last-minute gain as the broader market rallied into the close. The information technology sector overcame an early 1.2% decline.

The Fed's loose monetary policy has played a large role in the stock market's V-shaped recovery. On Monday, the central bank expanded its Main Street Lending Program to allow more small and medium-sized businesses to receive financial support.

Separately, Amazon hit a new all-time high, benefiting from RBC Capital Mkts raising its price target to $3300 from $2700.

U.S. Treasuries ended the session mixed. The 2-yr yield increased one basis point to 0.22%, while the 10-yr yield declined two basis points to 0.88%. The U.S. Dollar Index declined 0.3% to 96.67. WTI crude declined 3.2%, or $1.26, to $38.24/bbl. On a related note, OPEC+ agreed to extend the 9.7 mbpd production output cut through the end of July.