Stocks Try Digging Themselves Out of Yesterday's Hole

By:
Chris Gaetano
Published Date:
Jun 12, 2020
Stocks are doing their level best to recover after yesterday's carnage, which was the worst trading day since March.

As of 12:42 p.m. the Dow Jones Industrial Average was up by 340 points, the S&P 500 was up by 32 points and the Nasdaq was up by 80 points. None of these gains has come close to making up for yesterday's losses, however, which were 1,861 for the Dow, 188 for the S&P 500, and 527 for the Nasdaq, though the day is only halfway over.

The Wall Street Journal said traders appear to be trying to regain some of the mojo that had driven the explosive rally over the last few weeks, as some of today's best performing stocks so far were among the worst hit yesterday, such as Boeing, which is up more than 5 percent day after taking a drubbing on Thursday. They also appear to be reacting to news that the index for consumer sentiment rose slightly from 72.3 to 78.9 over the last month.

CNBC's Jim Cramer
has also advanced a theory that day traders have played a role in the market's gains, although he said that it's more that companies are essentially playing games with stocks by bidding up their price in premarket trading to fool inexperienced investors into buying shares at the market's open. He does not believe that activity from the traders themselves are a major factor. He advised amateur investors to at least wait until 9:30 to start making trades.

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