The stock market posted mixed performances today, with the S&P up 0.5% and Dow Jones down 0.3%. The SPY ETF is up 0.7%. The broader market was lifted on Wednesday by the promising news on Pfizer’s Coronavirus vaccine trial. Pfizer(PFE) stock was up 3.18% on the news. As infection number continues to surge in many states in the US, the market continues to stay sensitive to Coronavirus-related news after stocks posted the best quarter in over 20 years. A lot of the recent rally was fueled by the Fed’s easy money policy and hopes on a speedy recovery from the pandemic.
Economic Data
ISM Manufacturing Report on Business for June went up to 52.6 from 41 the month early. An ISM Manufacturing report data above 50 signals that business activities increased in June as a result of the reopening and stronger consumer demands. All eyes are now on the unemployment insurance claim data tomorrow as investors expect unemployment claims continues to decline as the country slowly recovers from the pandemic.
Fang Stocks
Tech stocks continue to be a bright spot for stock investors on Wednesday. FANG stocks posted strong performances today, with Facebook (FB) up 4.62%, Amazon (AMZN) up 4.35%, Netflix (NFLX) up 6.72%, and Google (GOOGL) up 1.69%. Tesla Inc. also continued its rally with a 3.69% rally closing at 1,119.63. FANG stocks continue to outperform their peers as they lead market rallies into the third quarter.
Bitcoin Price
Bitcoin price bounced off its 9,000 dollar support level and was up 1.22% today. Since the beginning of the pandemic, Bitcoin has made a significant recovery from its low below $5,000. In May and June, Bitcoin price has been range-bound between $8,500 and $10,000. A breach of the $10,000 resistance could lift Bitcoin back to its post-halving high of $10,500.
Commodities and Treasuries
Treasuries continue to sell off today as the market puts on slightly risk-on positions encouraged by positive vaccine news. 30-year treasury bond’s yield went up to 1.424% while 10-year treasury note touched 0.677%. Similarly, the risk-on mentality fueled the declines of other safe-haven assets such as gold and silver. Gold price down 1.1% while silver dropped by 1.8%.
Market forecast July 2nd, 2020
With strong risk-on momentum, we are expecting another rally tomorrow for stocks, given positive unemployment claim data tomorrow. Similarly, we are expecting safe-haven assets such as treasuries and gold to further decline tomorrow.
