Stock Market Update Tuesday, May 5th, 2020
Stocks finished higher but retreated into the close.
The major indices got off to a nice start today, with the NASDAQ leading the way.
At 10am ET, traders responded positively to the lowest ISM Non-Manufacturing PMI index reading since March of 2009 (41.8 reading vs a 37.5 forecast).
And by lunch the major indices were making new highs for the day.
Trading was sideways early afternoon, then there was another attempt at highs an hour before the close.
But in the last hour of trading, stocks were essentially in a free-fall, pulling away from session highs.
The drop occurred right when Federal Reserve Vice Chairman Richard Clarida was on CNBC saying that economy may need MORE fiscal and monetary support.
The reaction to Clarida’s comments might have been coincidental since this isn’t really new news. But then again, it could have been a reality check for traders, and a good reason to take some profits.
Here’s where the major indices ended the day:
- The S&P finished with a 0.9% gain. Up 26 points, the S&P ended at 2,868.
- The DOW ended 0.6% higher. Adding 133 points the DOW closed at 23,883.
- The NASDAQ was up 1.1%. With a 98 point gain the NASDAQ finished at 8,809.
Crude Oil (CL) finished higher for the 5th day in a row. With a 20.4% gain, Crude Oil ended the day at $24.55 a barrel.
Pfizer (PFE) was a winner today, leading the DOW with a 2.4% gain. The rally was a result of new COVID-19 study and patients receiving their first doses of a coronavirus vaccine.
Starbucks (SBUX) was up 1.4% after reporting that the company expects to have 85% of its U.S. stores open by the end of the week.
Disney (DIS) reported mixed earnings after the bell today. Earnings were lower which was expected because of the coronavirus shutdown of them parks and cruises.
But Disney+ streaming service was a winner with more than 50 million paid subscribers in early April (on March 28th there were 33.5 million paid subscribers). It doesn’t look like subscriber growth is enough to compete with a quarterly profit drop of 93% though…the stock is down over 1.0% in after-hours trading.
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.