California, Florida and Texas – America's three most populous states – set new COVID-19 daily case records Wednesday, and Texas temporarily halted its reopening plans. Nevada and Washington state mandated wearing masks in public amid troubling COVID-19 caseloads. Disney (DIS, -0.6%) is delaying the opening of Anaheim's Disneyland, while Apple (AAPL, +1.3%) announced it would re-close more than a dozen retail locations in Florida.
The steady stream of negative coronavirus headlines looked like it would sink stocks early Thursday, but investors eventually found reasons to buy.
Weekly jobless claims were yet again lower, at nearly 1.5 million, and continuing claims were better than expected at 19.5 million. News that banking regulators are going to loosen Volcker Rule restrictions propped up financial stocks such as JPMorgan Chase (JPM, +3.5%) and Bank of America (BAC, +3.8%), and gave the broader markets a little oomph, too.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
A late-day rally drove the Dow, which had declined by as much as 236 points earlier in the day, 299 points higher – a 1.2% gain to 25,745. The S&P 500 finished up 1.1% to 3,083, the tech-heavy Nasdaq gained 1.1% to 10,017, and the small-cap Russell 2000 closed 1.7% higher to 1,413.
Wall Street is caught in a tug-of-war. On the one hand, improving economic data continues to be wind in the bulls' sails. But action in regular hours and futures alike show that investors aren't exactly ignoring intensifying concerns that states might have to clamp down once again to slow the spread of COVID-19.
"We believe developed market policies for combating COVID-19 are shifting away from lockdowns and towards minimally acceptable strategies such as mask wearing, hand washing and contact tracing," writes Alastair George, an analyst with Edison Investment Research. "Compared to full lockdowns, the economic cost of these policies is significantly reduced. As a result, markets have been rising even as the biological effectiveness of a less intrusive approach remains unproven."
No one knows for certain the direction of the pandemic from here, so the best that investors can do is have a plan for whatever comes their way.
If you believe that Wall Street has priced in far too much optimism about the speed of America's bounce-back, these "bear market" funds – which largely outperformed the S&P on the last trip down – could serve as protective positions. If instead you want to stay in high-quality names that should run once the bull market sheds this bout of uncertainty, consider these 20 durable stocks that are well-positioned for the current economic environment and have the financial wherewithal to grind through a longer road to recovery.
Another way to play the next bull market, though, is to stack your portfolio with diversified funds whose thin expenses won't make a dent in your future performance. Here, we look at a baker's dozen of low-cost Vanguard funds (some with ETF alternatives) to ensure you're in position to join the next bull run.
-
Planning a Major Home Renovation? 3 Smart Ways to Finance ItFrom HELOCs to personal loans, here’s how to pay for a major home renovation without draining your savings.
-
Six Warren Buffett Quotes Every Retiree Should Live ByThe 'Oracle of Omaha' knows a thing or two about life, investing and retirement.
-
If You'd Put $1,000 Into Bank of America Stock 20 Years Ago, Here's What You'd Have TodayBank of America stock has been a massive buy-and-hold bust.
-
If You'd Put $1,000 Into Oracle Stock 20 Years Ago, Here's What You'd Have TodayORCL Oracle stock has been an outstanding buy-and-hold bet for decades.
-
How to Invest for Rising Data Integrity RiskAmid a broad assault on venerable institutions, President Trump has targeted agencies responsible for data critical to markets. How should investors respond?
-
If You'd Put $1,000 Into Sherwin-Williams Stock 20 Years Ago, Here's What You'd Have TodaySherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
-
If You'd Put $1,000 Into UnitedHealth Group Stock 20 Years Ago, Here's What You'd Have TodayUNH stock was a massive market beater for ages — until it wasn't.
-
What Tariffs Mean for Your Sector ExposureNew, higher and changing tariffs will ripple through the economy and into share prices for many quarters to come.
-
How to Invest for Fall Rate Cuts by the FedThe probability the Fed cuts interest rates by 25 basis points in October is now greater than 90%.
-
Are Buffett and Berkshire About to Bail on Kraft Heinz Stock?Warren Buffett and Berkshire Hathaway own a lot of Kraft Heinz stock, so what happens when they decide to sell KHC?
