Stocks are picking up where they left off yesterday with the S&P 500 pointing to another gain of about 1%. It is certainly helping to ease some of the pain from last week’s steep decline. The bigger question is this rebound just part of a minor retracement or a continuation of the prior rally. Very hard to tell at this point.
The market got a bid yesterday after the Fed would finally start buying corporate bonds, which again wasn’t new news. Then last night, the futures got a bump in hopes of an infrastructure bill. How many times have we heard that one before?
Of course, this could all change very quickly today, with retail sales coming at 8:30 am. Expectations are for sales to rebound by 7.5% in May after a decline of 16.4% in April. Also, we have industrial production at 9:15, and of course, Chairman Powell at 10 am. So it is impossible to say where the market could be at the end of the day.
For now, the futures are trading around 3,080, and have been holding that level since roughly 8 pm last night.
CME Mini Chart
NVIDIA (NASDAQ:NVDA) was downgraded by Morgan Stanley to Equal Weight from Overweight with a $380 price target. The stock has gone nowhere now since the middle of May. Hard to see it going up from further given the shares big move so far this year.
NVIDIA Stock Chart
Morgan Stanely also downgraded Intel (NASDAQ:INTC) to Equal Weight from Overweight at too, with a $65 price target. Intel has also been stuck in a range, but in this case, the RSI uptrend has been broken. I still think there is a good chance this one falls to around $55.90.
Intel Corp Daily Chart
Stocks To Extend Gains On Turnaround Tuesday
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