7/22/20 Market Notes
US Stocks finished mixed on Tuesday, paring earlier earnings driven gains after Senate Majority Leader Mitch McConnell cast doubt on the timing of further stimulus. Technology shares backed off from their recent rally, dragging the Nasdaq lower, while the S&P and Dow held on to meager gains. The S&P 500 added 5 points (0.2%) to 3,257, the Dow added 160 (0.6%) to 26,840, while Nasdaq gave back 87 points (0.8%) to 10,680. Meanwhile Treasuries edged higher and the Dollar came under considerable pressure, with the Bloomberg Dollar Index dropping 0.75%, its biggest drop in more than three months. WTI crude oil added $1 per barrel, and gold added $22.43 per troy ounce, supported in part by the weak dollar.
In earnings news, IBM, Lockheed Martin, and Coca Cola all beat analysts’ earnings estimates. IBM on higher than expected revenue, Coke on revenue in line with estimates, and Lockheed missing forecasts but raising guidance. Intuitive Surgical, Snap Inc and Texas Instruments all reported higher earnings after the close.
Asian markets retreated on growing US-China tensions, manifesting most recently in the US ordered closure of China’s Houston consulate. European Markets are down as the recent stimulus-induced euphoria gives way to more sobering geopolitical concerns, and US futures point to a lower opening for the same reasons. Microsoft, Tesla, and CSX report earnings today. Oil inventories and housing market data will also be released.
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.