Markets Live Recap: Stocks Reverse Early Morning Plunge and Close 1.5% Higher

Another 2.98 million Americans filed for unemployment benefits over the past week (versus the 2.7 million expected). Now, over 36.5 million Americans find themselves without work.

That sent the Dow down about 1.5% to start the day.

But then the market rebounded mid-day and closed about 1.5% higher – led by the financials and energy sectors.

Here's what our experts – Chris Johnson and Shah Gilani – saw at the beginning and end of the trading day. And why they're still not buying this rally…

Chris Johnson (8:45 a.m. EDT)

• Chris is anticipating a drop in the overall market over the coming weeks and thinks investors should be positioning themselves by buying puts on the S&P 500 and/or calls on the VIX.
• He likes one consumer staple, however: Kroger Co. (NYSE: KR), currently trading for $32.50.
  • After taking many "walks down Main Street" in his hometown of Cincinnati since the pandemic began, Chris has consistently been impressed with how well the employees are running the grocery store and how many people are buying groceries there.
  • Chris has a $50 price target on KR stock.
• He also likes Camping World Holdings Inc. (NYSE: CWH), currently trading for $14.50.
  • The stock recently burst through its 20-day and 50-day moving averages to the upside, which is very bullish.
  • But he doesn't want to take a long position just yet because he thinks the stock is a slightly overbought. You could create a greater margin of safety if it pulls back and you're able to buy it for $12.

Shah Gilani (3:45 p.m. EDT)

• Shah is not buying today's rally because he thinks it was led by short sellers being forced to cover their positions.
  • Leading up to today, the financials (banks) and energy stocks were two of the hardest-hit sectors. Lo and behold, they were two of the best performing sectors today.
• Shah is worried about the banks' ability to increase shareholder value going forward because they were spending more on buybacks than they were generating income before the pandemic.
  • And they won't be able to do that in the future now that politicians and the public are keen to it.

Catch us tomorrow – starting LIVE again at 1:30 p.m. EDT with D.R. Barton, Jr., right here.

If you missed our live streams today, you can now replay them on our YouTube channel, here.

Got a question you want our experts to cover? Send us a note.

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