Garrett Baldwin breaks down the likely impact of recent earnings reports on the retail sector and points investors toward the best stocks to watch.
Jetblue Airways Cp
Stocks were at their lows for the year back in March when COVID-19 was spreading rapidly throughout the world for the first time.
It was a time of fear and panic in the financial markets as stocks fell about 35% from their all-time highs in February with little information to go on for the novel virus.
But then, the United States federal government went into their economic playbook and passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
This provided over $2 trillion in economic support to American workers, families, and small businesses.
In general, most of the stock market has reacted favorably.
Since the CARES Act was passed on March 27, the S&P 500 is up 30% to new all-time highs.
The Dow Jones today could lose 100 points after lawmakers introduced a more limited stimulus bill than the last to support citizens in the COVID-19 pandemic.
Investors continue speculate on the actions of the Federal Reserve ahead of the central bank's meeting on Tuesday.
The Dow Jones Industrial Average started the day more than 700 points in the red after new uncertainty emerged over Washington's handling of the coronavirus.
The outbreak has raised new concerns about rising corporate debt, lack of ammunition from central banks, and the possibility that the bull market will finally end in 2020.
The Dow Jones today will get a significant bump after reports of China's manufacturing sector expanding in March at its fastest rate in eight months.
The current pullback in stocks has people talking "crossroads" – decision time for the bulls and bears.
The current pullback is still small and not decisive by itself. But there are some hints that the sellers could take control of the market, and the sector landscape reflects that.
I mean, we're beginning to see some tectonic shifts that may be giving us a tip on where things are headed in March.
But overall, the "risk-on" sectors have remained strong performers through 2019. Sectors like biotech, semiconductors, and small caps continue to see strong scores from my Best in Breed system.