7/29/20 Market Notes
Markets retreated on Tuesday as investors concerns about the slow progress of the stimulus bill outweighed generally strong earnings. The S&P 500 Index lost 21 points (0.7%) to 3,218, the Dow fell 205 points (0.8%) to 26,379, and Nasdaq gave up 134 points (1.3%) to 10,402. Although market focus remains on rising virus cases, a close look at the data shows case increases appear to have peaked sometime last week.
In earnings news; home builder DH Horton solidly beat estimates while 3M and McDonalds disappointed. Pfizer missed on earnings, but shares were up on increased guidance and solid revenues.
In other economic news investors are awaiting any developments coming out of the FOMC meeting at 2pm. While no change to interest rates is in the forecast, the Fed is expected to provide guidance on its expectations for interest rates and asset purchases. Some observers expect the Fed may introduce additional QE measures to combat what higher frequency data shows to be a plateau in the economy recovery.
US equity futures are higher before the bell in anticipation of accommodative guidance from the Fed this afternoon amid an otherwise light news day. AMD is up over 10% premarket on positive guidance and a solid earnings beat, as the chip manufacturer increases market share at rival Intel’s expense.
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.