S&P 500 Crosses 3,200

The stock market is having a nice morning. The S&P 500 is back over 3,200. We haven’t closed above that level in over a month. In fact, we’re getting close to a new all-time high.

The weak spot is that the overall rally continues to be very narrow. Tech stocks are surging while the rest of the market is rather flat. Speaking of tech, Analog Devices said it would buy Maxim Integrated for $21 billion in an all-stock deal.

This quote from a recent Reuters article summed it up:

“COVID-19 is now inversely related to the markets. The worse that COVID-19 gets, the better the markets do because the Fed will bring in stimulus. That is what has been driving markets,” said Andrew Brenner, head of international fixed income at NatAlliance.

The Q2 earnings season is about to begin. Wall Street expects corporate profits to fall by 44%. If that’s right, it would be the worst quarter in over a decade.

We have new highs this morning from FactSet (FDS), Check Point Software (CHKP) and Church & Dwight (CHD). Moody’s (MCO) is very close to a new high.

Posted by on July 13th, 2020 at 10:01 am


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