• 1879 Advisors

7/24/20 Market Notes


Equities got off to a rocky start on Thursday after Initial Jobless Claims came in at 1,416,000 - 116,000 higher than expected and the first uptick since the recovery began. Stocks slid further in the afternoon as it became clear that Congress was making little progress on passing a new stimulus bill. The S&P 500 Index lost 40 points (1.2%) to 3,236, the Dow fell 354 points (1.3%) to 26,652, and Nasdaq finished down 245 points (2.3%) to 10,461. Treasuries gained, with the 10-year yield slipping 2 basis points to 0.58%. The dollar continued its decline while gold rose, approaching an all-time high.


As earnings season kicks into high gear, more companies than not are beating analysts’ low expectations. Tesla, Microsoft, and Chipotle beat; while Twitter missed. Southwest Airlines topped dismal estimates on an 83% plunge in revenue; but shares were down after warning that improving conditions seen in April and May have stalled as case counts rise. In other economic news, data continues to show improvement but the rise in initial claims adds to concern about the pace of recovery.


Asia stocks ended mixed overnight, with Chinese markets solidly lower after Beijing ordered the closing of a US consulate in retaliation for the US shuttering of China's Houston consulate. European equities are lower this morning along with US futures, on escalating US-China tensions and fears of a slowing recovery. Intel is down more than 10% in premarket trading after reporting earnings that met expectations but disclosing a six month delay in the release of its latest processor. Verizon and Next Era Energy beat estimates this morning while American Express disappointed.

Sincerely,


1879 Advisors


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.


3 views

© 2020 by 1879 Advisors® which is the marketing name used by Bruderman Asset Management, LLC, an investment adviser registered with the SEC and which provides investment advisory products, and its affiliate company, Bruderman Brothers, LLC, member FINRA/SIPC through which securities are offered.

Maintained by Digital Resource

Privacy        |        Legal / Disclosures