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Just about a month after Major League Baseball would have had its opening day, US markets are poised to open higher today on optimism that the opening day for the economy will be coming a bit sooner than previously thought. California is starting to make plans to open its economy in a limited fashion, and New York has also released its plans for how to reopen as well. We’re not out of the woods yet, but any move in the direction of opening is a good thing, and as long as these measures can be taken while keeping the outbreak in check, additional steps to reopen can continue.
Be sure to check out today’s Morning Lineup for a rundown of the latest stock-specific news of note, the German Constitutional Court’s decision ruling on QE, and the latest stats and trends on the COVID outbreak
While the S&P 500 is down modestly over the last five trading days, we’ve seen quite a bit of dispersion in sector performance. At one end of the spectrum, Energy stocks have been on fire rallying nearly 5%. Behind Energy, the only two other sectors that are positive over the last week are Communication Services (XLC) and Technology (XLK). On the downside, Utilities (XLU) are down by nearly as much as Energy stocks are up (-4.46%). Not far behind XLU, Health Care (XLV) and Real Estate (XLRE) are also down over 3%.
Relative to each sector’s 50-day moving average, we’re also seeing a wide range of levels. Of the 11 sectors, six are currently more than 5% above their 50-day moving averages, but after that, the only other sector that is above its 50-day moving average is Consumer Staples and just barely above its 50-DMA at that. While no sectors are currently oversold (more than one standard deviation below its 50-day moving average), Utilities, Financials, and Industrials are all more than 2% below their 50-DMAs.