The S&P 500 Index built on its recent record and closed above 3500 for the first time last week. Data indicating that COVID-19 is on the downslope, a supportive Federal Reserve, and a view that the recent second quarter corporate earnings are a likely trough for this cycle all contributed to the optimism. We …
It was a record week as the S&P 500 Index completed its comeback from the COVID-induced selloff in the Spring. On Tuesday, the S&P 500 closed at 3,389 which exceeded the previous high set back on February 19th and ended the week at 3,397. While the unknown social and economic impact of COVID-19 caused …
It was a quieter week in the earnings reporting cycle with only 16 companies in the S&P 500 Index reporting earnings. The last big announcements come this week with some major retailers reporting earnings. With 457 companies in the S&P 500 having reported second quarter earnings to date, 81% have reported results above consensus. …
Heading into the tail-end of the second quarter earnings season, 441 companies in the S&P 500 have reported earnings with 82% reporting results above consensus. This is better than the long-term average of 64.9%. A fourth consecutive better than expected week has moved current consensus for second quarter S&P 500 earnings to down 31.7% …
Second quarter Gross Domestic Product (GDP) for the U.S. saw a record contraction of 32.9% as the April through June time period was hit by the COVID induced business shutdowns and stay at home orders. While the large decline is sobering, it is also likely to be short-lived as economic data has been improving. …
We’re expecting a great deal of news flow this week with 189 companies in the S&P 500 Index scheduled to report second quarter earnings, the Federal Reserve meeting taking place on Wednesday, and the first look at Second Quarter Gross Domestic Product (GDP) scheduled for release on Thursday. Additionally, the enhanced unemployment benefits are …
The second quarter earnings reporting period kicked-off last week. While earnings should be significantly lower for many companies due to the COVID related shutdowns, some favorable results relative to these dire expectations pushed the S&P 500 Index to an up week. Of the 47 companies in the S&P 500 Index that have reported second …
This week we will start to see the companies reporting second quarter earnings show us their cards. Due to uncertain outlooks at the height of the COVID back in April, more than 180 companies in the S&P 500 Index declined to provide earnings guidance, so we may have a wider range of outcomes than …
Positive economic data continues to provide an optimistic catalyst to the stock market. The June ISM Manufacturing Index moved back up to 52.6 indicating economic expansion. The June employment report showed nonfarm payrolls of 4.8 million which were well ahead of expectations and built on the 2.7 million jobs created in May. The unemployment …
As we mark the halfway point in 2020, we have seen some rapid fluctuations between optimism and pessimism over the course of six months. We entered the year with a strong economy, a robust stock market, and a Federal Reserve that was committed to economic expansion. We have since witnessed the social and economic …
The tug o’ war between economic improvement and the resurgence of COVID-19 has the equity market gyrating back and forth depending which sentiment rules the headlines each day. We have a few weeks before the second quarter earnings reports start, so the economic data and COVID headlines are the main catalysts for market direction. …
A combination of concern regarding a re-acceleration of COVID-19 cases and a natural tendency for a pause once the market regained its beginning year levels resulted in a decline in major market averages last week. The Federal Reserve which has pledged economic support throughout the COVID-19 crisis left short-term interest rates unchanged near zero …
While the economy still has room for improvement, the stock market has staged an impressive recovery. Coming off the March low, the S&P 500 Index has advanced 45%. The containment of COVID-19, Federal Reserve’s actions to provide liquidity into the financial system, and continued incremental positive news on the opening of the economy have …
Despite the widespread economic displacement from the COVID-19 lockdown, an optimistic case can be made for a rebound in consumer activity over the next few months. The U.S. consumer accounts for approximately two-thirds of economic activity, so a healthy consumer is the engine of the U.S. economy. With the continued phase-in of activity, workers …
What did you do this weekend? Some consumers purchased groceries, got takeout food, or dined at a restaurant. Some would-be travelers stayed home, where as others drove or flew on trips. Some consumers went to a mall or big box store, shopped at a small business, or received packages at their homes. The U.S. …
Increased testing for COVID-19 is providing greater knowledge of the extent of the spread of the virus and its lethality. Several biotech and pharmaceutical companies are progressing with the development and testing of potential vaccines. The world keeps moving forward toward a gradual re-opening of social and economic activity. At the same time, Federal …
Focus on the impact of the COVID crisis and the pace of re-opening of the world economy has made the first quarter earnings reporting season somewhat less impactful than usual. The sharp downturn in economic activity made forecasting difficult and even many companies were unable to accurately provide guidance on the impact on their …
Incremental social and economic activity continues across the globe. Some harder hit countries and specific areas of the United States will take longer to re-open, but the transition can be seen as restrictions on individuals and businesses in many areas continue to relax. Increased economic activity should follow. For first quarter earnings, 275 companies …
Some States have begun partial re-opening of previously closed businesses and activities, and several other States have been discussing re-opening plans. The opening of the economy is likely to be state-by-state and industry-by-industry. COVID cases have risen where testing has increased, but hospitalizations and deaths appear to have peaked in most States giving governors …
The equity markets put together back-to-back winning weeks as the economy and COVID-19 news is less worse than it was potentially forecast to be just a few weeks ago. The curve appears to be flattening on COVID, select parts of the U.S. are set to be opened this month, and most of the early …
Global equity markets had a strong recovery rally last week as scenarios begin to firm up of when the COVID-19 peaks in various countries and the global economy begins to re-open. While the social and economic recovery is likely to last several months or longer, the financial markets tend to anticipate outcomes and a …
The equity market gave back some of its recent gains last week, but volatility also decreased which we view as a welcome signal relative to the higher levels of volatility we’ve seen over the past few weeks. Uncertain timing on a return to normalcy in society and the economy is likely to weigh on …
The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was passed by the Senate and the House of Representatives and was signed by the President on Friday. If uncertainty about the impact of the coronavirus was centered on the two unknowns of the infection itself and what the government was doing about it, …
As the measures taken to slow the spread of the coronavirus (COVID-19) are beginning to take a toll on the economy through a reduction in activity in travel, dining, entertainment and other consumer spending categories, the U.S. government has been formulating ways to help stem the economic impact on both consumers and businesses. Two …
Uncertainty over the economic impact of the coronavirus (COVID-19) continues to negatively impact markets. The declaration of a national emergency on Friday allows coordinated action and financial resources to be used to shore up the economy and provide assistance to public health organizations. In our Dissecting Headlines section, we look at the national emergency …
Link to the Risk Tolerance Questionnaire Here The investment markets have been volatile the past few weeks. With events like the COVID-19 outbreak, it can be difficult to know when they can happen or what impact they can have on the stock market and your investment portfolio. One thing you can do to be …
As markets continue to experience volatility amid economic concerns from the spread of the coronavirus (COVID-19), we want to look at counterbalancing effects we are seeing to stabilize the economy. We mentioned last week we believe the economy should self-correct over time. While 10-year Treasury yields have fallen, the Federal Reserve also made the …
Global equity markets had their worst week in several years last week. The weekly decline, due to economic concerns surrounding the spread of the coronavirus (COVID-19), has pulled all major stock indices into negative territory for the year. Market volatility, which included several large intra-day swings, is indicative of the uncertainty. In our Dissecting …
Continued spread of the coronavirus (COVID-19) led stocks to the downside late last week. News of the virus also spreading outside of China to countries such as Italy has brought additional concern to investors trying to understand the potential economic impact of the outbreak. We view the issue as transitory. While the first quarter …
Despite concerns over impact of the coronavirus, the equity markets staged a recovery back toward record levels last week. We believe the significant story here is corporate earnings. With 387 companies in the S&P 500 Index having reported fourth quarter 2019 earnings, 72% have exceeded expectations, 10% have been in-line and 19% have been …
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