7/16/20 Market Notes
US equities gained ground on Wednesday fueled by optimism on the vaccine front and further supported by positive economic data; most notably, a jump in industrial production data that came in above expectations. Strong earnings reports by Goldman Sachs and UnitedHealth Group added to the optimistic tone. In other news: crude oil and gasoline inventories declined considerably more than expected, lifting prices in the energy sector, and mortgage applications rebounded in response to historically low rates.
The S&P 500 Index advanced 29 points (0.9%) to 3,227, the Dow added 228 points (0.9%) to 26,870, and Nasdaq finished 62 points higher (0.6%) at 10,550. Treasury prices and the Dollar weakened while crude oil prices and gold edged higher. Asian stocks were broadly down overnight after China released a mixed bag of economic data suggesting continued recovery progress but at a slower pace than expected; and European equities are down ahead of guidance from the ECB on its ongoing liquidity measures. S&P 500 futures are down 21 points at 7:00 this morning, ahead of the widely watched retail sales report to be released at 8:30. Technology stocks are under the most pressure, with Twitter down over 6% in pre-market trading after several high profile accounts were hacked; including those of Joe Biden, Elon Musk, and Barak Obama. The Philly Fed Manufacturing Index for June and last weeks initial unemployment claims will also be released this morning. Notable names reporting earnings today include Johnson and Johnson (JNJ), Netflix (NFLX, Taiwan Semiconductor (TSM), Abbott Labs (ABT), and Bank of America (BAC).
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.