2% gains today . . . U.S. stocks surged again today with optimistic investors prevailing.
The S&P 500 is now trading at the same level as early March. And it’s now trading above both the 50-day and 200-day moving average.
Many well-known tech stocks have already surged. Some are even trading at new highs – despite the weak economic outlook.
Yet other stocks continue to trade at a deep discount. And these discarded “black and blue chips” offer a huge opportunity for gains.
Most folks will simply BUY shares of stock – and wait for the price to go up. And this works great if you have tons of money, time and patience.
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- 590% on Newmont Mining
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The Big News…
New York Stock Exchange Reopens
The NYSE reopened its trading floor for the first time in a couple of months. Opening up the stock exchange was one reason for optimism from investors in today’s trading session. Stocks rose 2%.
Nevada Unemployment Reaches 28%
One-third of the Las Vegas economy is connected to the hospitality industry. The entire sector has been shut down with mass layoffs and furloughs. The latest data suggests that Nevada’s unemployment rate reached 28% in April.
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Republican Convention Status Unknown
The Republican National Convention is scheduled to start on Aug. 24 in Charlotte, North Carolina. Yet the rising number of Covid-19 cases means that it may be difficult to hold the event. The event is expected to draw 50,000 people over four days. President Trump has threatened to pull the event if the governor can’t assure that it will be held.
The Coronavirus Numbers
Here are the numbers from Tuesday at 3:45 p.m. ET:
- 5,646,120 Infected worldwide
- 350,121 Deaths
- 1,717,534 Infected in the U.S.
- 100,269 Deaths in the U.S.
What’s Next
Stocks jumped 2% on Tuesday after the long Memorial Day weekend.
Investors are optimistic for the reopening of America. It comes after 8+ weeks during which most states imposed “stay at home” orders and forced the closure of businesses.
The economy is clearly reeling from the shutdown – with a plunge in GDP and sky-high unemployment.
Yet there are signs of America’s comeback getting started:
- TSA screenings increased from 87k on April 14 to 267k on May 24
- OpenTable reports a sharp increase in restaurant reservations within the last two weeks
- Truckstop reports four consecutive weeks of increased shipping activity
Current projections call for U.S. GDP to shrink 6% – 7% in 2020. Yet it appears that the economy is now bottoming out. And that means things will gradually recover from the current lows.
That’s why I’m investing for . . .
U.S. stocks are already rising rapidly. And these early gains are just the start of America’s comeback.
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Yours in Health & Wealth,
Ian Wyatt