Today is Friday, June 19 and Wall Street is heading for its fourth weekly gain in the past 5 weeks while trading could get wacky Friday because of some technical stock market circumstances. We are reading that nearly one-third of all investors above 65 sold all their stocks between February and May and coronavirus mortgage bailout shrinks further, but bank-held loans are faring worse.
Stocks rose on Friday, adding to this week’s strong gains, amid a report by Bloomberg News that China was set to up its purchases of U.S. farm products to comply with phase one trade deal. The report eased concerns about U.S.-China trade relations as the two countries exchange heated rhetoric regarding the coronavirus.
Traders could be in for a wild ride on Friday because of a couple technical factors. The S&P 500 will have its first rebalancing of the year at Friday’s close, more than three months after the market’s wild swings forced S&P Dow Jones Indices to delay this traditionally quarterly event. Index rebalancing has often been associated with an uptick in market volatility as index and exchange-traded funds tracking the S&P 500 have to adjust.
Nearly 1/3 of all investors over 65 sold all of their equity holdings during the panic a few months ago. Nearly 1 in 5 of all investors sold. This is why having a plan in place before the storm comes is so very important.
The number of borrowers seeking relief on their mortgage payments has fallen for the third straight week, as more Americans go back to work and cities reopen. As of June 16, 4.6 million homeowners were in forbearance plans, allowing them to delay their monthly payments for at least three months.
The coronavirus pandemic has upended the U.S. economy and wreaked havoc on businesses ranging from global shipping to cruise lines to restaurants. But food-delivery companies are thriving, with DoorDash looking to be the rare winner in its niche.