RPM’s bullish earnings buoyed the materials sector

Commenting on RPM International’s earnings and today’s trading Gorilla Trades strategist Ken Berman said:

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Q2 2020 hedge fund letters, conferences and more

The major indices are all trading higher at midday with tech stocks and the Nasdaq leading the rebound off last Friday’s lows. The stimulus negotiations in Washington continue to be in focus, and according to the latest reports, House and Senate Republicans will introduce a $1 trillion bill later today, including a replacement to the extra federal unemployment benefits. Travel and tourism-related stocks suffered a hit amid the fears of a second wave of outbreaks in Europe. Although the number of infections seems to have peaked in the Sun Belt, the global COVID situation remains worrisome.

Alluvial Fund

Alluvial FundAlluvial Fund commentary for the second quarter ended June 30, 2020. Q2 2020 hedge fund letters, conferences and more Alluvial Fund rose 14.8% in the second quarter, recouping most of the first quarter’s losses. As I write in late July, the fund has reached approximately break-even for the year while small-cap and micro-cap indexes remain Read More

RPM International Inc.’s bullish earnings

RPM International Inc. (NYSE:RPM)’s bullish earnings report buoyed the materials sector, and the chemical manufacturer’s stock hit a new all-time high thanks to the firm’s surprisingly stable domestic sales.  In economic news, durable goods orders exceeded expectations, jumping higher by 7.3%, and even though core orders missed by a hair, overall, the report confirmed the strong rebound in manufacturing. U.S. stocks have been outperforming global risk assets today, as the dollar hit another multi-year low against several of its major peers, which could continue to boost the shares of the most export-focused firms.

Market Wrap

Dow: 26,519, + 49 or 0.2%

S&P 500: 3,224, + 8 or 0.2%

Nasdaq: 10,410, + 47 or 0.5%

Russell 2000: 1,471, + 3 or 0.2%

Market breadth has been relatively weak this morning, with advancing issues only outnumbering decliners by a 6-to-5 ratio on the NYSE at midday. Only 11 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 88 stocks hit new 52-week highs. The major indices have been hovering around their daily VWAPs (Volume-Weighted Average Price) throughout the morning session, pointing to a mixed and choppy afternoon. Besides the relatively strong tech stocks and materials, the key sectors are little changed at midday, with only utilities notably lagging the broader market. On a negative note, cyclical issues and financials, in particular, have been under pressure amid the continued COVID-related worries. Stay tuned!

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