“STOCK MARKETS LOSE GROUND AS JOBLESS CLAIMS CREEP UP WHILE JUNE’S NEW HOME SALES SURGE 13%”
Weekly Market Update – July 27, 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.
|Stocks End Down After Coming Close to Record Highs
The major U.S. stock markets ended the week down, but not after NASDAQ breached its all-time high and the S&P 500 came within about 3% from its all-time high from February of this year.
There was a palpable sector rotation much of the week, as Energy led the way and Information Technology was the worst of the 11 S&P 500 sectors, a marked difference to their respective past performance records. In addition, the small-cap and mid-cap names picked up steam relative to their large–cap counterparts and even the value names triumphed over the growth names for the week.
While COVID news continued to dominate, there was some good news on the vaccine front as AstraZeneca and Oxford University announced positive results in a trial involving more than 1,000 patients.
|Weekly Jobless Claims Streak Ends at 15
This time last week, investors were taking note of the 15–week streak of declining jobless claims, although that streak was viewed in context of massive claims since mid–March. Unfortunately, that 15–week streak came to an end.
On Thursday, July 23rd, the Department of Labor released the following:
|Earnings, Earnings & Earnings
While just more than one–quarter of the S&P 500 companies have reported earnings results for the second quarter, the results are mixed, depending on your perspective. But research firm FactSet released their summary as of Friday and found that:
|New Home Sales Surge 13% in June
New home sales surged in June and are even better than they were pre–COVID as the surge was much higher than consensus expectations. In fact June’s numbers are the best in over a decade.
On Friday, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly announced the following statistics for June 2020: