Stocks just saw their best week of the year! – DOW rallies 1100+ points – Here’s what you need to know…

Stock Market Update Sunday, June 9th, 2019

Stocks just finished with their best week of the year!

After starting Monday with a loss, the major indices finished higher for 4 days straight.

This week, stocks rallied on BAD NEWS, not good news…proof that you should always trade what you SEE, not what you THINK.

Why the rally on bad news?

Because bad news and the possibility of a weaker economy means the Fed might start to cut rates. This exactly what traders want. And a rate cut is good for stocks!

Here’s what traders were focused on:

  • Trade – A little over a week ago, President Trump announced an unexpected tariff on Mexican imports. This shook the markets. But Mexico seems eager to work with the U.S. Earlier in the week, it sounded like the tariff increase might get postponed. Then on Friday, there was news that the U.S. might drop tariffs altogether, which was later confirmed.
  • The Fed – Fed Chair Powell said that the Fed is committed to doing what it takes to “sustain expansion.” Then on Wednesday, private sector jobs for May saw the worst numbers since 2010. Friday’s Jobs Report was pretty dismal as well, with 75,000 jobs added (vs. a 180,000 forecast). And with fewer than expected jobs added, traders expect that the Fed will come in and cut rates to help a slowing economy. Based on the CME FedWatch Tool, traders now believe that there is a79% chance the Fed will cut rates by July.

Here’s where the major indices ended the week:

  • The S&P finished with a 4.4% gain. Up 121 points, the S&P ended at 2,873.
  • The DOW ended higher by 4.7%. Adding 1,169 points, the DOW closed at 25,984.
  • The NASDAQ was up 0.5%. With a 41 point gain, the NASDAQ finished at 7,617.

Crude Oil (CL) bounced back on Thursday and Friday after approaching the $50 mark earlier in the week. Avoiding a 3-week slide, CL finished higher by 0.8%, ending at $53.90 a barrel.

Beyond Meat (BYND) rocketed higher after reporting better than expected numbers. BYND ended Friday with an impressive 39.0% gain.

This upcoming week trade will be in the spotlight once again. Especially since President Trump has suspended “indefinitely” the tariffs that were supposed to go into effect against Mexico on Monday. 

Here is the economic calendar for the week:

Real Time Economic Calendar provided by Investing.com.

This Stock Market Update was provided by Rockwell Trading Services LLC.

Like it? - Share it!

Leave a Reply 0 comments