7/14/20 Market Notes
Equity markets reversed course after a solid start on Monday to finish mostly in the red after California stoked fears of a reversal in economic reopenings when the Governor closed bars and suspended indoor dining in 30 counties and Los Angeles announced that students would not be returning to schools in the fall. In an otherwise light news day the S&P 500 shed 30 points (0.9%) to 3,155, after reaching an interday high of 3,235. The Dow finished 10.5 points higher to close at 26,086 after being up over 500 points earlier in the day, and the Nasdaq dropped 227 points (2.1%) to 10,391. Treasuries rose, with 10-year yield dipping to 64 basis points, while the dollar ticked down against major currencies, the Bloomberg spot gold price edged higher to close over $1,800 per Troy ounce, and WTI crude weakened but held the $40 per barrel mark. In company specific news, Analog Devices announced an acquisition of Maxim Integrated Products and PepsiCo kicked off a busy earnings week with a solid beat. The rest of the week is expected to be action packed with financial stocks unofficially kicking off an earnings season that is expected to be dismal. The consolidated estimates of industry analysts suggests that markets are pricing in a year-over-year decline of 43% in S&P 500 companies operating earnings according to Yardeni Research. Asian stocks finished lower amid growing coronavirus containment concerns across the region; with Chinese stocks fairing the worst after the US denounced China’s maritime claims in the South China Sea as unlawful. European bourses are modestly lower while U.S. futures point to a rebound ahead of an earnings season that kicked off this morning with JP Morgan beating analysts’ estimates.
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.