Market Perspective for May 11, 2020

The Nasdaq extended its winning streak with an increase of 0.78 percent on Monday. It has risen 2.45 percent in 2020, while the S&P 500 Index remains down 9.30 percent.

Healthcare was the best performing sector of the day climbing 1.72 percent. SPDR Technology (XLK) rose 0.66 percent. Biotechnology powered the healthcare sector. iShares Nasdaq Biotechnology (IBB) rallied 4.28 percent. SPDR S&P Biotech (XBI) popped 4.77 percent. While SPDR S&P Pharma (XPH) added 3.83 percent.

The National Federation of Independent Businesses (NFIB) will publish its small-business confidence index for April on Tuesday. Wednesday brings the producer price index. Economists see a 0.5 percent drop. On Friday, April retail sales will be reported. Analysts forecast a decline of 12.3 percent and 9.0 percent ex-autos.

Earnings season is starting to wind down. Among the large-caps reporting this week are Duke Energy (DUK), Toyota (TM), Cisco (CSCO), Norwegian Cruise Line (NCLH), Applied Materials (AMAT) and Brookfield Asset Management (BAM).

Carnival Cruise Lines (CCL) reported on Monday. It said bookings increased 600 percent after announcing it would sail again on August 1st.

Bond yields extended their rise on Monday with the 10-year yield closing at 0.73 percent, the highest since mid-April. iShares iBoxx High Yield Corporate Bond (HYG) fell 0.45 percent.

The U.S. Dollar Index rose 0.37 percent on Monday, powered by strong gains versus the yen. iShares MSCI EAFE fell 0.09 percent and iShares MSCI Emerging Markets (EEM) slid 0.65 percent.

West Texas Intermediate crude oil slipped $1.09 per barrel on Monday bringing the per barrel price to $25.08. SPDR Energy (XLE) dipped 1.75 percent.

 

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