Stimulus bill widely believed to be at risk
8/6/20 Market Notes
US equities continued their upward momentum on Wednesday fueled by continued strong earnings reports that outweighed mixed economic data. The S&P 500 Index added 21 points (0.6%) to 3,328, the Dow finished up 373 points (1.4%) to 27,202, and Nasdaq gained 57 points (0.5%) to 10,998. Dollar weakness continued and Treasury prices dipped with the 10-year yield adding 3 basis points to 0.54%. WTI Crude Oil contracts rose 49 cents to $42.19 per barrel after a larger than anticipated decline in inventories and gold continued its recent rally.
Asian stocks were mixed overnight while European markets are currently down. US futures are flat ahead of the Initial Jobless Claims Report expected to show 1.415 million new claims.
Markets will remain keenly focused on Friday's payroll report with expectations high for progress on a potential $1.5 trillion stimulus bill to help support a recovery that’s widely believed to be at risk as virus case counts rise. Friday’s non-farm payroll report, expected to show the addition of 1.4 million jobs, will be highly scrutinized by region and economic sector for further insight on the health of the recovery. The consensus expects the July unemployment rate to improve to 10.5% from 11.1% in June.
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.