A note from Cokie: For now, it appears Wall Street is responding in a positive light as stocks continue to rally amid the growing optimism surrounding the reopening of several US states.

Investors will continue to look to the latest private-sector employment figures from EDP, and it goes without saying that economists expect to see further job losses during May. When will all of this turn around? No one knows for sure, but it does seem that America is on the way back to work.

Sadly, this week participants are focused on a wave of protests across the US as a result of the death of George Floyd. With protests becoming more peaceful, the hopes of reopening the economy have offset many other investor worries.

What about you? Do you watch the nightly news in disbelief as America faces one challenge after another? I understand and I’m still offering free 15-minute consults.

Today, building the right financial portfolio means more than just putting money in the market or a 401k. To be truly successful, it can mean working with someone who understands not only the ups and downs of the market but also understands you and your personal needs.

It takes someone, who is willing to sit down and understand the personal financial challenges you are facing. I would like to have that opportunity, especially if you are concerned about your future and investments.

This Week on Wall Street

The shortened week, which began with a powerful two-day rally of trading, was enough to drive the markets into another week of solid gains.

The Dow Jones Industrial Average rose 3.75%, while the Standard & Poor’s 500 advanced 3.01%. The Nasdaq Composite Index climbed 1.77% for the week. The MSCI EAFE Index, which tracks developed stock markets overseas, gained 6.18%.[1][2][3]

Rising Optimism

Returning from Memorial Day weekend, stocks surged on rising optimism over economic re-opening, declines in new infections, and progress in the development of a vaccine.

Stocks continued their march higher, lifted by signs that the White House and Congress may be working together to put together another stimulus package. But the momentum lost steam, in part due to news of China’s vote to override Hong Kong’s autonomy. Comments by President Trump on the last day of trading eased concerns.[4][5]

Rotation in Leadership

The recovery from the March lows has been powered by large-cap growth stocks, especially the mega-cap technology names. However, this week saw new sectors leading the market higher, notably the financials and industrials, while the technology and health care sectors lagged.

This leadership rotation is being referred to by some market commentators as the “re-opening trade.” If these sectors are to remain leaders, it may hinge on a steady economic recovery and escaping a second wave of COVID-19 infections.


Monday: Purchasing Managers Manufacturing Index (PMI). Institute for Supply Management (ISM) Manufacturing Index.

Wednesday: Automated Data Processing (ADP) Employment Report. PMI Services Index. ISM Non-Manufacturing Index.

Thursday: Jobless Claims.

Friday: Employment Situation Report.

Source: Econoday, May 29, 2020

The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.


Tuesday: Dick’s Sporting Goods (DKS), Tiffany (TIF), Zoom Video (ZM), Crowdstrike (CRWD)

Wednesday: Cloudera (CLDR), Campbell Soup (CPB)

Thursday: Broadcom (AVGO), Docusign (DOCU), Slack Technologies (WORK)

Source: Zacks, May 29, 2020

Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Any investment should be consistent with your objectives, time frame and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.

[1] The Wall Street Journal, May 29, 2020

[2] The Wall Street Journal, May 29, 2020

[3] The Wall Street Journal, May 29, 2020

[4] CNBC.com, May 28, 2020

[5] FoxBusiness.com, May 29, 2020