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Markets started this Hump Day in the green, and blossomed from there as the day moved on. Buying into oversold names in plenty of industries after two days of selling is definitely part of the equation, but also a feeling of “normalization” has re-entered society in general, welcome as a spring breeze. The Dow gained +1.79% on the day, with the S&P 500 +1.86%, the Nasdaq +1.62% and the small-cap Russell 2000 won the day on major indexes, +2.51%.
In the final minutes before the close, indexes ticked down a tad. They had all been at or near +2% within the last half hour of trading. As such, we’re now suddenly break-even on the week with two more trading days left — and a big jobs report expected Friday morning. Private-sector payrolls from ADP (ADP - Free Report) this morning served as a reminder our labor market remains strong, and even President Biden’s State of the Union address had plenty for all Americans to agree — and be positive — on.
As we saw in those ADP numbers, Leisure & Hospitality is once again back following the Omicron setback. We see the results today in travel-related stocks like Hyatt (H - Free Report) and MGM (MGM - Free Report) , both +4% on the day. Expedia (EXPE - Free Report) has added +2.3% on the day, and delivery giant UPS (UPS - Free Report) is +2%. Are we seeing the Great Reopening, Mach II? The Great Reopening Reopening?
In reality, our market is volatile in a way we haven’t seen for a very long time. In fact, prior to the U.S. trade war with China a few years ago, we rode remarkably placid markets for long stretches of time. But these days, a definitively positive day like today might be followed by a crushing move lower across the board (except oil & gas, probably). After all, the Russian invasion of Ukraine is only a week old.
In other news — though somewhat related to higher gas prices — Ford (F - Free Report) has announced today it will be separating its EV business from its internal combustion engine (ICE) business. This no doubt anticipates the availability of the F-150 Lightning EV this spring, which may catapult Ford into Tesla (TSLA - Free Report) territory in terms of EV sales overall. And Ford will be investing $50 billion into its EV business by 2026, with 2 million EVs built annually by then. Ford shares grew +8.7% on this news today.
Tomorrow, jobless claims data, PMI & ISM Services, factory orders and Q4 revisions to productivity and unit labor costs are all on deck for the morning. Later, we’ll see testimony from Fed Chair Jay Powell, who’s had much to mull over since his last appearance on Capitol Hill. Analysts will be playing close attention to see if he tips his hands regarding what the Fed is likely to do with an interest-rate hike two weeks from today.
Image: Bigstock
Markets Bounce Back on Springlike Positivity
Markets started this Hump Day in the green, and blossomed from there as the day moved on. Buying into oversold names in plenty of industries after two days of selling is definitely part of the equation, but also a feeling of “normalization” has re-entered society in general, welcome as a spring breeze. The Dow gained +1.79% on the day, with the S&P 500 +1.86%, the Nasdaq +1.62% and the small-cap Russell 2000 won the day on major indexes, +2.51%.
In the final minutes before the close, indexes ticked down a tad. They had all been at or near +2% within the last half hour of trading. As such, we’re now suddenly break-even on the week with two more trading days left — and a big jobs report expected Friday morning. Private-sector payrolls from ADP (ADP - Free Report) this morning served as a reminder our labor market remains strong, and even President Biden’s State of the Union address had plenty for all Americans to agree — and be positive — on.
As we saw in those ADP numbers, Leisure & Hospitality is once again back following the Omicron setback. We see the results today in travel-related stocks like Hyatt (H - Free Report) and MGM (MGM - Free Report) , both +4% on the day. Expedia (EXPE - Free Report) has added +2.3% on the day, and delivery giant UPS (UPS - Free Report) is +2%. Are we seeing the Great Reopening, Mach II? The Great Reopening Reopening?
In reality, our market is volatile in a way we haven’t seen for a very long time. In fact, prior to the U.S. trade war with China a few years ago, we rode remarkably placid markets for long stretches of time. But these days, a definitively positive day like today might be followed by a crushing move lower across the board (except oil & gas, probably). After all, the Russian invasion of Ukraine is only a week old.
In other news — though somewhat related to higher gas prices — Ford (F - Free Report) has announced today it will be separating its EV business from its internal combustion engine (ICE) business. This no doubt anticipates the availability of the F-150 Lightning EV this spring, which may catapult Ford into Tesla (TSLA - Free Report) territory in terms of EV sales overall. And Ford will be investing $50 billion into its EV business by 2026, with 2 million EVs built annually by then. Ford shares grew +8.7% on this news today.
Tomorrow, jobless claims data, PMI & ISM Services, factory orders and Q4 revisions to productivity and unit labor costs are all on deck for the morning. Later, we’ll see testimony from Fed Chair Jay Powell, who’s had much to mull over since his last appearance on Capitol Hill. Analysts will be playing close attention to see if he tips his hands regarding what the Fed is likely to do with an interest-rate hike two weeks from today.
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