Stock Market Update Wednesday, June 17th, 2020
Stocks took a breather today after yesterday’s stellar Retail Sales report.
Futures were up overnight. But after the opening bell stocks dropped.
But unlike the last couple of days, the sell off was minor.
After finding some support, stocks made a slight recovery late morning and rallied into the afternoon.
With a slide into the close the major indices finished the day mixed.
Why the late day dip?
The sell off could be caused by new coronavirus cases across the country.
The city of Miami has paused its reopening efforts as Florida reported a record 2,783 cases in a single day. And Texas reported an 11% spike in daily Covid-19 infections.
There were also disappointing housing numbers to digest after Housing Starts missed expectations. Analysts estimated that May’s report would indicate that a v-shaped recovery was close. But the real numbers weren’t so good…Housing Starts came back at 974,000 vs. an estimated 1,100,000.
Here’s where the major markets ended the day:
|*As of market close|
Hertz Rental (HTZ) was in the spotlight again today (for all of the wrong reasons).
The SEC announced that it was investigating the Hertz share offering and Hertz abruptly ended their plans to raise more money with worthless shares. HTZ was halted midday and closed at $2.00, up 2.6%.
Lowes Companies Inc. (LOW) hit 52-week highs today with a 3.0% gain. Today’s rally was fueled by an analyst upgrade. The stock has benefited from coronavirus stay at home orders, with DIY homeowners spending big money on projects.
H&R block (HRB) reported earnings that beat forecasts, but revenue fell short of expectations. The lower revenue has a lot to do with the delayed tax season, with tax deadlines extended to July 15th. The company also announced that it would no longer participate in the IRS sponsored program. This program provides free tax filing for low income families. HRB believes they are on “strong footings” but investors may think otherwise. The stock lost 9.5%, and saw its biggest drop since march.
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.