7/15/20 Market Notes
US equities shrugged off a weak opening yesterday ending the day solidly higher. The S&P 500 rose 1.35% led by energy, materials and industrials while financials lagged, but still gained 0.51%. The weak early tone was set by weaker-than-expected earnings among major banks. While JP Morgan easily beat expectations, Wells Fargo reported a loss on higher loan loss provisions and announced a dividend cut. Optimism for additional stimulus eventually took hold and markets turned decidedly positive by early afternoon. The economic data calendar picks up again later this morning with the release of industrial production data that is expected to show a 4.3% increase in manufacturing activity. Tomorrow sees the release of retail sales (+5.0% forecast) and initial jobless claims (+1.3m). Earnings season continues with reports from Bank of America, Johnson & Johnson and Netflix among the more notable. Markets look to open higher this morning as a report from Moderna Inc that all 43 patients in a safety trial of its SARS-CoV2 vaccine developed neutralizing antibodies. That news propelled the stock up 18% in pre-market trading and led to a pop in early morning futures trading.
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.