7/10/20 Market Notes
US equity fell on Thursday as daily virus case growth continued at a record pace. Technology stocks led the market, once again, with energy and financials down. The S&P 500 Index dropped 18 points (0.6%) to 3,152, the Dow lost 361 points (1.4%) to 25,706, while the Nasdaq gained 55 points (0.5%) to 10,548. Treasuries and the US dollar posted gains while gold took pause from its recent rally and WTI crude oil dipped to just under $40 a barrel. European shares are higher today and US equity futures are mostly flat before the bell as Covid deaths hit records in Florida, Texas, Arizona and California. Gilead Sciences is trading higher in pre-market action after reporting its Remdesivir may reduce mortality by over 60% in certain patient populations. Asian stock finished mostly lower with Chinese stocks retreating from the recent rally after the government took measures to reduce speculation. While headlines continue to highlight rising case counts across the US and the world; markets have so far shown resilience in their rebound off March lows, preferring to focus on economic reopening, pricing in a post-Covid state of the economy supported by unprecedented liquidity and massive stimulus. Rising death counts could undermine this thesis to the extent that governments and municipalities reverse course on reopening. So far though, this does not appear to be the case, with many local governments steadfast on reopening.
Disclosures: This market commentary is written by the 1879 Advisors® and represents the views of 1879 Advisors®. This commentary is not investment advice and should not be used as a basis to make investment decisions. Please consult with your registered investment advisor before making any investment decisions.