7/9/20 Market Notes
US equity markets pushed higher on Wednesday in a volatile trading session light on significant economic news. The S&P 500 Index gained 25 points (0.8%) to 3,170, the Dow rose 177 points (0.7%) to 26,067, and the Nasdaq added 149 points (1.4%) to 10,493. M&A was in focus again with Allstate Corporation agreeing to acquire National General Holdings for $4 Billion. Levi Strauss was under pressure after reporting Q2 revenue that was below analyst forecasts. Treasuries were materially unchanged; the dollar Index was down 0.4%; crude oil hovered around the $40/barrel mark, and the Bloomberg Spot gold price increased by $12.55. Overseas; Asian stocks closed higher with Chinese stocks outperforming, as the Shanghai Shenzen Composite posted its 8th consecutive gain, rising more than 16%. European stocks are poised to rise for the first time in three days after SAP reported stronger than expected Q2 revenue. This morning's much anticipated jobless report came in better than expected on both the initial and continuing claims numbers; but not so much better as to sway futures; which remained mostly unchanged after the report. Initial claims fell to 1.31 million for the week ending July 3rd (vs. a median forecast of 1.375 million) signaling that the pace of firings continues to decline. Among states with growing coronavirus case counts, Florida and California saw drops in initial claims, Arizona was unchanged, and Texas initial claims rose by over 20,000 from the previous week.
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.