Markets “In a Nutshell” for June 10, 2020
Investment Week at a Glance
Stocks were up last week. The Dow Jones Industrial average gained 6.8% while the S&P 500 was up 4.9%. The New York Stock Exchange Composite (2,000 stocks) jumped 7.1%. The “average investor’s index” (Value Line index) soared 10.9%. Foreign stocks were up 7.1%. Bond yields dropped (bond prices up) as the 10-year Treasury ended at 0.90%. (Sources: Barron’s, Wall Street Journal)
Stock Rally to Continue?
Stock markets around the globe have staged a strong rally since the March 23rd lows with the Global Dow (world stocks) up 38% and U.S. stocks up an even more impressive 43%. So will the rally continue? J.P. Morgan investment strategists see further stock gains (especially cyclicals and value stocks) over the next 4-6 weeks but warn that if the labor market does not significantly improve in summer, stocks could suffer a downturn. (Sources: Barron’s, Wall Street Journal)
Travel Stocks a Buy?
Travel related stocks have had a rough time of it since the start of the COVID-19 crisis. Hotels, airlines, cruise lines, casinos and even oil refiners all in an economic malaise as the economy shut down. But with the economy opening up, is it time to jump into travel stocks? Barron’s thinks so and list 7 travel related stocks that can benefit from the recovering economy. In the airline sector, Southwest, Spirit and Delta could all benefit especially after seeing their stocks drop 40-68% since the pandemic started. Other companies include Marathon Oil, Extended Stay America (hotels), Linblad Expeditions (cruise lines), and Las Vegas Sands (casinos). (Sources: Barron’s, Bloomberg)
We are now in the 3rd month of recession caused by COVID-19. In the past 100 years, in what year was the shortest duration recession of 6 months?
Have a Great Week!
4. The recession of 1980 lasted 6 months.