Message from Jon
We are seeing a resurgence in Covid-19 that is causing numerous states to retreat from their phased opening plans.1 This may result in collateral damage to the economic recovery efforts and more importantly, the unemployment rates.2
Last week we saw some warning signs reappear in the data that has us concerned about a market correction in our near future, but the signs could be abated if the Gov't continues their stimulus efforts on the national and household fronts.3,4,5 Moving to higher ground is not warranted since the decision to do so could be negatively impacted with more stimulus money, while staying the course would be doing so in the face of conflicting data.6
These times are certainly difficult, to be sure, and like I have said previously, we are not out of the woods quite yet.
We still have the Presidential Election to arrive, and while we are way too early to tell just yet, Biden seems to be leading the polls by a good margin, giving Wall Street more uncertainty to what our future holds.7
Till we speak again, stay cool and by the pool!
Stocks React to Jobs Report
WEEKLY UPDATE - JULY 27, 2020
The Week on Wall StreetStocks slipped in the final days of trading last week on higher jobless claims and rising tensions in the U.S.-China relationship. The Dow Jones Industrial Average lost 0.76%, while the Standard & Poor's 500 dipped 0.28%. The Nasdaq Composite Index dropped 1.33% for the week. The MSCI EAFE Index, which tracks developed stock markets overseas, rose 1.24%.