Stock Market Update Monday, July 6th, 2020
Just when you thought Independence Day fireworks were over, stocks opened the week with a bang!
The major indices opened the day higher and rallied all morning.
But it was tech stocks and the NASDAQ leading the way.
Why the rally?
It’s a little hard to say.
Chinese stocks were up 5.7% overnight. But there were also more coronavirus concerns, with numbers rising globally.
The World Health Organization (WHO) stated that Saturday’s case count rose by 200,000 infections in a 24-hour span! 130,000 of those cases were confirmed to be in the USA.
So with the economy facing a resurgence of COVID-19, it appear as though traders have a major case of FOMO (Fear Of Missing Out)!
After the strong morning rally there was a little pullback mid-day. Then a rally into the close left the major indices near session highs.
Here’s where the major markets ended the day:
|*As of market close|
Tech stocks were the big winners today.
Amazon (AMZN) closed 5.7% higher, with a new record high. With more and more people staying at home and buying from Amazon during the pandemic, the stock closed above 3,000 for the first time ever.
Uber (UBER) was up 6.0% today! Uber announced that it is buying Postmates for 2.65 billion in an all-stock purchase.
Tesla (TSLA) Tesla’s stock price trajectory looks like a rocket blasting into space. The company’s shares hit massive all-time highs today. Shares closed higher by 13.4%.
Dominion Energy (D) closed lower by 11.0% today after Berkshire Hathaway (BRK-A) reached a deal to purchase Dominion Energy for $9.7 Billion. The deal includes 4 billion in cash and assuming 5.7 billion in debt. This purchase will increase Berkshire Hathaway’s footprint in the natural gas market with BRK will now carrying 18% of all interstate natural gas transmission, over its previous 8%.
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.