7/17/20 Market Notes
Markets declined on Thursday despite mostly upbeat economic news and positive earnings reports. The S&P 500 Index dropped 11 points (0.3%) to 3,216, the Dow lost 135 points (0.5%) to 26,735, and the Nasdaq fell 77 points (0.7%) to 10,474. The Dollar was unchanged and Treasuries gained, while crude oil and gold retreated. In earnings news; Bank of America surprised to the upside on higher trading revenue that was offset by a massive increase in loan loss reserves. It has been a similar story at major banks with Goldman Sachs, Morgan Stanley, JP Morgan and Citigroup all reporting sharp increases in trading as banks bought bonds from panicked investors in March and sold them back into the record rally that followed. Johnson and Johnson also gained as it increased its full-year guidance although it reported mixed earnings for the recent quarter. Netflix is down 8% in pre-market trading after it reported that lifting of stay-at-home orders was likely to impact growth for the year. On the economic front: June retail sales gained 7.5%, topping the street’s expectation of a 5% gain and initial unemployment claims were weaker than analysts’ projections. The high level of unemployment claims - 1.35 million in the latest week and +1 million for 17 straight weeks - suggests we have a long recovery road ahead. Asian stocks finished mixed with China slightly higher after selling off in the last two sessions. European stocks are fluctuating while US futures are rebounding from yesterday’s decline.
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.