The major indices are mixed and flat at midday, despite a broadly bearish start to the session, as bulls remain in control on Wall Street following yesterday’s memorably surge. Fed Chair Jerome Powell and Treasury Secretary Mnuchin testified today in Washington on the fiscal and monetary response to the COVID-crisis. Both of them stood firmly behind the largest stimulus package in history and confirmed that more action might be needed, and investors sentiment is still upbeat, although Treasury yields have been edging lower today while the Volatility Index (VIX) bounced back in the first hours of trading.
Filing An IPO On The Nasdaq May Be Difficult For Chinese Companies
Risk assets got under pressure before the opening bell on rumors that it will be harder for Chinese companies to file for an Initial Public Offering (IPO) on the Nasdaq. The exchange is set to tighten its rules concerning accounting and insider connections, and the change could add to the tensions between the two countries that have been rising in recent weeks. In economic news, while housing starts missed the consensus estimate, the more forward-looking building permits provided a bullish surprise even as the April reading is expected to be the weakest due to the lockdowns.
Dow: 24,534, – 64 or 0.3%
S&P 500: 2,938 + 2 or 0.1%
Nasdaq: 9,293, + 58 or 0.6%
Russell 2000: 1,332, – 2 or 0.2%
Market breadth has been weak relatively this morning following yesterday’s brutal rally, with decliners outnumbering advancing issues by a 3-to-2 ratio on the NYSE at midday. Only 7 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 41 stocks hit new 52-week highs. The major indices have been trading above their daily VWAPs (Volume-Weighted Average Price) for most of the morning session, pointing to intraday buying pressure. The most lockdown-sensitive issues gave back some of yesterday’s lofty gains in early trading, while the tech sector has been the clear leader of the intraday bounce, so far, so the Nasdaq could pull its weight in the afternoon as well. Stay tuned!
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