Bottoms Up

U.S. markets continue to rally as the worst of the economic news may be behind us.

Read in Browser   The Market Sum | Insight after the bell By Caleb Silver, Editor in Chief Monday's Headlines 1. US markets continue to rally on economic hopes 2. NBER officially declares recession 3. AstraZeneca and Gilead have merger talks 4. Personal economic security grows 5. Macroeconomic certainty also rises Markets Closed Dow 27,572.44 +461.46 (+1.70%) S&P 3,232.39 +38.46 (+1.20%) Nasdaq 9,924.75 +110.66 (+1.13%) VIX 25.78 +1.26 (+5.14%) Bitcoin $9,712.15 −$58.87 (-0.60%) US 10-Yr Yield 0.884 −0.02 (-2.21%)     Image courtesy Jillian Meyer Photo/Getty   Markets Today U.S. markets started strong and ended stronger to begin the week, picking right up where they left off on Friday. The Nasdaq closed at a record high, and the S&P 500 is now flat for the year. The Russell 2000 and the DJIA both jumped 2% as industrials and financials led the charge. Volatility did rear up again today for the first time in awhile, but it was in concert with more buying as stocks rallied into the close.    It's officially a recession, according to the National Bureau of Economic Research (NBER), and it started in February. That ended the longest economic expansion in U.S. history, and it ended with a bang. Economic indicators plunged for two straight months, but they have been rebounding, as we saw with the May unemployment report released last Friday.    We are far from all clear, especially in the personal finances of individuals and households hurt most by the economic shutdown. Those will get worse while the macroeconomy gets better in the short-term. The hope is that personal finances will improve as the economy grows, compelling companies to hire and business and consumer spending to improve.   As for the capital markets, investors have already made up their minds that the economy will get better—a lot better. Every sector of the S&P 500 has rallied, and every stock within those sectors, on average, has also rallied—especially in the energy sector.     chart courtesy Bespoke Investments   Headlines: The National Bureau of Economic Research (NBER) declared that the U.S. economy officially fell into a recession in February of 2020. The committee determined that a peak in monthly economic activity occurred in the U.S. economy in Feb. 2020. The peak marks the end of the expansion that began in June 2009 and the beginning of a recession. The expansion lasted 128 months, the longest in the history of U.S. business cycles dating back to 1854.  British pharma giant AstraZeneca has made a preliminary approach to rival drugmaker Gilead Sciences about a potential merger, Bloomberg reported over the weekend. AstraZeneca currently has a market cap of over $140 billion, and Gilead is valued at $96 billion. The merger of the two would be the biggest healthcare or pharma deal in history.  Comcast has committed to spending $100 million over three years to help combat racism and injustice, CEO Brian Roberts announced in an email to staff on Monday. The commitment is for $75 million in cash and $25 million in media.  Japan's first-quarter GDP declined less than was originally thought, according to revised data. The third largest economy in the world shrank at an annual rate of 2.2%, instead of 3.4%. This follows a 7.2% decline in the prior quarter and confirms that the country has slipped into its first recession in over four years. OPEC and its oil-producing allies have agreed to extend production cuts by one more month to the end of July. In April, the group decided to cut production by 9.7 mb/d (10% of global supply) in May and June to balance the oil markets after the novel coronavirus hit demand. Countries that exceeded their quotas, like Nigeria, Angola, and Iraq, have agreed to compensate with extra cuts. Oil prices fell today, but they have been steadily regaining ground since mid-April. A treasure chest worth over $1 million has been found 10 years after it was hidden in the Rocky Mountains. Art and antiquities collector Forrest Fenn, 89, created the treasure hunt and shared clues to find it in his book and online as a way to get people to explore the outdoors and experience an old-fashioned adventure. An estimated 350,000 people looked for the treasure—at least five died—and there have been court cases involving it too, according to The New Mexican. image courtesy fennstreasures.com     Who's Getting Hired? Investors and economists are still scratching their heads over last Friday's surprise May jobs report, which showed the addition of 2.5 million jobs and a drop in the unemployment rate. Most people have acknowledged that there are flaws in the data and it doesn't paint the true picture of unemployment or the personal finance crisis unfolding across America. But you can't argue with the fact that there was hiring, or better put, re-hiring, and the days of millions of job losses may be behind us.   In terms of the kinds of jobs that are available right now in America, Glassdoor published this roundup of the positions, the percentage change in openings, and the pay.   chart courtesy Glassdoor   Households Cash Crunch Of the more than 40 million people out of work, or those who have suffered a loss of income due to the pandemic, the tide of financial fear is rising fast, according to the most recent U.S. Census Household Pulse Survey. Nearly half of households surveyed experienced a loss in employment income, with slightly fewer expecting that to happen. That's leading to delayed medical care and housing insecurity for some.    The income inequality divide is becoming more pronounced as the economic realities of a post-pandemic world start to set in.   chart courtesy Deutsche Bank     The Macroeconomic Picture Is Improving From 50,000 feet, the global economy is undoubtedly improving. We can see it in manufacturing reports, industrial production, consumer and business spending, and demand. The improvement is slow and will be gradual, as you would expect coming out of such a steep and immediate downturn.     It's improving, and there are fewer surprises and less uncertainty. At least that's what the Citi Economic Surprise Index is telling us. The Index measures the pace at which economic indicators are coming in ahead of or below consensus forecasts. When the index is negative, it means that the majority of reports are coming in below expectations, while a positive reading indicates that most data is coming in ahead of expectations.     Investopedia's Commitment to Equality, Diversity, and Inclusion Investopedia is committed to the principles of greater equality, diversity, and inclusion. We stand with communities of color who have to live with racial and income inequalities every day.  Something has to change and the change has to start with each of us. Our content reaches tens of millions of people around the world every month; we have a responsibility to make sure we are inclusive in our coverage and promote knowledge and information that empowers all people, regardless of race, religion, ethnicity, or gender. The finance and investing industry has not always been a steward of those beliefs, and frankly, we recognize that we haven't done enough, either.   This is our commitment and the steps we will take to make that change. More News: Where We Stand Top Technology Penny Stocks for Q3 2020 Dollar General Beats on Earnings, Sets All-Time High SPONSORED BY DIREXION How Long Will Bears Stay in Charge? While the current market may be a factor in the small- and mid-cap bear market, it's far from the only one. Direxion's experts explain why it's happening and what lies ahead. Learn More  > (chart courtesy YCHARTS)     Shares of beauty company Coty rose by nearly 23% as investor sentiment shifted toward stocks that are expected to recover as the economy continues to reopen. Cruise line stocks, such as Norwegian (over 21%) and Carnival (over 16.5%), are also up on the hopes of a quick recovery.     Packaging company Amcor fell by over 3.5% today. Monster Beverage's stock price dropped 2.5%. Earlier, Morgan Stanley maintained its Hold rating on the energy drink manufacturer. Word of the Day Recession A recession is a macroeconomic term that refers to a significant decline in general economic activity in a designated region. It had been typically recognized as two consecutive quarters of economic decline, as reflected by GDP in conjunction with monthly indicators such as a rise in unemployment. However, the National Bureau of Economic Research (NBER), which officially declares recessions, says the two consecutive quarters of decline in real GDP are not how it is defined anymore. The NBER defines a recession as a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.     Photo courtesy webfoundation.org   Today in History June 8, 1955: Tim Berners-Lee, future inventor of the World Wide Web, is born in London, England, the son of two designers of the Ferranti Mark I, an early commercial computer. 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