Despite the large red-candle this week (meaning the market closed significantly lower than where it opened) – we did close higher than the previous week – up around 1.4%
The rotation trade was back on – with re-opening stocks surging.
For example, the energy ETF XLE was up 20% (the ultimate re-opening trade) – as traders bid up oil stocks as they anticipate strong demand returning (e.g., cruise lines, flights and car travel)
Some notable quotes to offer context:
“We do see the economy continuing on a solid path of recovery, but the main risk we see is clearly the further spread of the disease here in the United States. With the virus now spreading, the next few months could be challenging”
— Jay Powell (Fed Chairman)
“Unfortunately, we’re extremely disappointed that the state of California continues to keep Disneyland closed. I wish state officials would trust Disney’s science-based safety protocol that it has implemented at other parks in the country instead of standing by an “arbitrary standard.”
— Bob Chapek CEO Disney
I just think this 10 p.m. just knocked out a whole bunch of other industries. I mean, bars, restaurants that were hoping to just hang in until, you know, December and then re-evaluate January, February, because January, February is always slower. So I just think this just puts, you know, a nail in the coffin for some places”
— Teresa de Haba, McSorley’s (NYC Restaurant) owner.