The Easiest Game You'll Ever Play?

Jun 12 21:06 2020 Print This Article

Fred Imbert and Eustance Huang of CNBC report the Dow rises more than 400 points, but Wall Street clinches biggest weekly loss since March:Stocks rose on Friday in volatile trading as traders tried to regain some of the sharp losses from the previous session. The major averages, however, clinched their worst week since March as traders took profits and grew nervous of a resurgence in Covid-19 cases.The Dow Jones Industrial Average gained 477.37 points, or 1.9%, to finish the day at 25,605.54. The blue-chip index had traded over 800 points higher earlier in the day. The S&P 500 rose 1.31% to 3,041.31 while the Nasdaq Composite added 1% to close at 9,588.81.For the week, the Dow and S&P 500 lost 5.5% and 4.7%, respectively, while the Nasdaq shed 2.3%. All three notched their worst week since March 20.The stocks of companies that depend on a successful reopening of the economy rose on Friday with Delta Air Lines up 11.8% and cruise-ling operator Carnival Corp. adding 14.5%.Those stocks were hit heavily during Thursday’s sell-off as investors feared the reopening of the economy could be delayed by a second wave of cases.“Given the magnitude of the rally, it would shock me if we had a one-day sell-off and that’s it,” said Morgan Stanley Investment Management’s Andrew Slimmon. “The stocks that are up the most from the lows are still the risk-on, high beta, value, small-cap stocks,” Slimmon, who is a managing director and senior portfolio manager at the firm, told CNBC’s “Squawk Box Asia” on Friday morning Singapore time. “They’re still the big winners and I would suspect that there’s more pain to come near-term before the market clears out kind of this excessive speculation that we’ve seen recently.”

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About Article Author

Pension Pulse

Leo Kolivakis is an independent senior economist and pension and investment analyst with years of experience working on the buy and sell-side. He has researched and invested in traditional and alternative asset classes at two of the largest public pension funds in Canada, the Caisse de dépôt et placement du Québec (Caisse) and the Public Sector Pension Investment Board (PSP Investments). He's also consulted the Treasury Board Secretariat of Canada on the governance of the Federal Public Service Pension Plan (2007) and been invited to speak at the Standing Committee on Finance (2009) and the Senate Standing Committee on Banking, Commerce and Trade (2010) to discuss Canada's pension system.

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