Stocks rebound after snapping 7-day winning streak

Why this market strategist recommends investing in industrial stocks right now

Belpointe chief market strategist David Nelson and Wealth Enhancement Group Senior Vice President Nicole Webb on investing in coronavirus markets.

U.S. equity markets rallied Wednesday, getting back on track after a late-day selloff during the prior session snapped the S&P 500’s longest winning streak in 16 months.

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The Dow Jones Industrial Average gained 258 points, or 0.93 percent, in the opening minutes of trading while the S&P 500 and the Nasdaq Composite rose 0.87 percent and 0.92 percent, respectively.

Rallies on both the Dow and the S&P were interrupted after seven days of gains on Tuesday when Sen. Majority Leader Mitch McConnell, R-Ky., said the White House and top Democratic leaders did not hold COVID-19 relief talks that day.

Looking at stocks, Tesla, Inc. announced a 5-for-1 stock split that will be distributed at the close of trading on August 28. Shares of the electric-car maker were up 229 percent this year through Tuesday.

Meanwhile, Moderna Inc. agreed to a deal worth up to $1.5 billion to supply the U.S. government with at least 100 million doses of its experimental COVID-19 vaccine, which began a Phase 3 study late last month.

Eastman Kodak Co. CEO Jim Continenza said the company has “more work” to do to secure a $765 million government loan to aid its pivot into the pharmaceutical industry. Kodak posted a quarterly loss of 8 cents per share as revenue fell 31 percent from a year ago to $213 million.

Elsewhere, Overstock.com Inc. priced a 2.1 million-share offering at $84.50 per share, 8.15% below Tuesday’s closing level.

ViacomCBS shares were in focus after Chairman Emeritus Sumner Redstone died on Tuesday evening. He was 97.

Looking at commodities, gold fell $6.30 to $1,940 an ounce while West Texas Intermediate crude oil climbed 71 cents to $42.30 a barrel.

U.S. Treasurys slid, causing the yield on the 10-year note to climb by 1.8 basis points to 0.676%.

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In Europe, Britain’s FTSE led the gains, trading up 1.53%, despite the UK economy contracting by 20.4% in the three months through June and entering a recession. France’s CAC and Germany’s DAX were higher by 0.75% and 0.33%, respectively.

Asian markets finished mixed, with Hong Kong’s Hang Seng adding 1.42%, Japan’s Nikkei rallying 0.41% and China’s Shanghai Composite slipping 0.63%.

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