|MARKETS MOSTLY UP THIS WEEK AS NASDAQ LEAPS TO ANOTHER RECORD HIGH
Weekly Market Update — July 14, 2020
|Weekly Market Performance
*Source: Bonds represented by the Bloomberg Barclays US Aggregate Bond TR USD. This chart is for illustrative purposes only and does not represent the performance of any specific security. Past performance cannot guarantee future results.
|Markets Up Again This Week
The S&P 500 and DJIA were up again week, but those larger–cap indices were not up as much as the previous week as worries that accelerating COVID-19 infections will slow down a recovering, but still fragile, economy.
While there seemed to be new COVID-19 data almost every hour of every day, there was a collective pause on Wall Street as investors digested the fact that the U.S. now has more than 3 million infections, with Florida, Texas and California continuing to report new daily record highs. While no one expects businesses to shut down like what happened in March and April, there is fear that increasing cases will cause consumers – and businesses – to pull back from spending, thereby slowing down any recovery. But the announcement from Gilead Sciences seemed to reassure investors.
The markets also are trying to digest reports that another round of stimulus might be coming to Main Street. While it is still too early to know, the stimulus is expected to be somewhere between $1 trillion (Republicans proposal) and $3.5 trillion (Democrats proposal).
Investors did receive more positive news that the economy is recovering, but how the data is received likely depends more on whether you\’re a glass half–full or half–empty type of investor. Glass half–full investors were pleased that initial unemployment claims dropped for the 14th straight week in a row whereas glass half–empty investors bemoan the fact that the initial claims number is still more than 1.3 million.
|Glass Half-Full or Half-Empty?
|GDP Drops in All 50 States
On Tuesday, the Commerce Department\’s U.S. Bureau of Economic Analysis reported that real GDP decreased in all 50 states and the District of Columbia in the first quarter of 2020. Further, the breadth of the percentage changes ranged from -1.3% in Nebraska to -8.2% in New York and Nevada.
Nationally, the leading contributors to the decreases were:
|Markets Around the World
Markets Up Again This Week
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