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Market Indexes Shift Back Toward Bullishness

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The first trading day of a new week — and first day of summer — was a very good one, finding attractive value across the board in stocks that had been beaten up over the past few days. At its session high, the Dow was +618 points; it closed +586, +1.76% — and all 30 stocks in the index were up on the day.

The S&P 500 almost kept pace with all its sectors in the green, +1.40% Monday, with the Nasdaq lagging but gaining at the close: +0.79%. The Russell 2000 took the brass ring, however: +2.16%.

That said, all indexes are still down over the past five trading sessions: the Dow -1.15%, the S&P 500 -0.58%, the Nasdaq closest to breakeven at -0.038%, and the Russell -1.65%. This is why it’s easy to surmise the value plays made for easy pickings today.

In fact, the Dow put in its best single-day performance in more than three months. Of these indexes, only the S&P 500 is still positive for June. Might we expect this to change over the course of the week?

Bitcoin finished down 7.7% on the day, as the Chinese government takes hold of crypto mining in its Sichuan province and elsewhere. The 10-year bond yield is back beneath 1.5% again. So as the Great Reopening continues, might market participants operate with the certainty that equities are the place to invest at this time? Perhaps we’ll wait to see how New & Existing Home Sales and PMI Manufacturing & Services fare over the next couple days.

Day One of Amazon (AMZN - Free Report) Prime Day was decent, averaging $47 per order so far (though households often placed more than one order today). However, shares were down today nearly 1% (though still +2% over the past five trading days), perhaps on Prime Day’s novelty wearing off. There are also relative low barriers to entry for Amazon competitors like Target (TGT - Free Report) and Walmart (WMT - Free Report) to offer temporary sale prices and compete for consumers today and tomorrow.

Though today was a boon for equity investors, we’re still making our way through a less-than-taut reopening period: inflation fears in some places and actualized in others, a slightly volatile “back to work” procession and, of course, pockets of the U.S. with woefully low Covid vaccination rates — leading to new outbreaks of the coronavirus we’re all ready to say goodbye forever to — make for bumpy pathways at present. But we’re still going forward, and today was all downhill!

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