The American stock exchange is closed for Memorial Day. It didn’t stop the
Dow Jones Industrial Average
to rally strongly.
How is it possible? Although the markets in the United States are closed, business continues as usual for others. This means that the index futures are trading, and we can extrapolate from where the actual indices would be.
futures gained 33.10 points, which implies an increase of 1.2% for the index.
futures indicate a 1.2% gain for the technology benchmark, while the Russell 2000 is up 1.6%.
Finding a reason for the market gain is another story. There is strength in Japan, where the
rose 1.7% and in Germany, where the
was up 2.5% after the Ifo business sentiment index in Germany rose stronger than expected due to a sharp increase in future expectations.
Otherwise, he is looking for straws. Andrew Brenner of NatAlliance Securities, for example, presented five reasons for the recovery, including: the aforementioned German sentiment index; the fact that Chinese and Hong Kong stocks have stopped falling; an article by Bloomberg on the lack of an alternative to equities; the reopening of cities and countries around the world, including Tokyo; and the Face the Nation segment with Eric Rosengren, who said the Federal Reserve would be ready to start helping small businesses this week. “So make your choice,” says Brenner. “Actions are at their highest level.”
At this rate, it could even be due to the fact that I wrote a decidedly bearish Trader column in this weekend’s issue of Barron’s. At this rate, it is not so beautiful.
Whatever the reason, however, it’s good to know that the U.S. stock market gets a boost one day when we shouldn’t even be paying attention.
Write to Ben levisohn at [email protected]