Afternoon Note
There are several narratives at play today. The media has been talking up the over 40,000 new Covid-19 cases in over 30 states. Texas is the first state to reimpose restriction. And now, the coronavirus task force is once again giving a press conference with Dr. Fauci and Vice President Pence speaking. Fauci said the White House coronavirus task force is "seriously considering" pool testing for Covid-19.
I'm impressed with the market thus far considering all the negative inputs:
Of all these, I think the Facebook (FB) news that more companies are halting their ads due to the company’s lack of response to hate speech on their platform. Verizon (VZ pulling ads until FB comes up with solution) and Unilever (halting at least through 2020) are two of the latest companies to do so.
FB is down 7% and is having the deepest impact on the session, as its bringing down all the big Technology and Communication Services giants that normally would be places for investors to camp out on weakness.
All of the S&P 500 sectors are in the red, with Financials and Communications Services leading the pack lower. Breadth is decidedly negative, but once again, new 52 week highs far outpace the lows.
S&P 500 Index |
-1.85% |
Communication Services (XLC) |
-3.70% |
Consumer Discretionary (XLY) |
-1.29% |
Consumer Staples (XLP) |
-1.18% |
Energy (XLE) |
-2.94% |
Financials (XLF) |
-3.75% |
Health Care (XLV) |
-1.37% |
Industrials (XLI) |
-1.45% |
Materials (XLB) |
-1.25% |
Real Estate (XLRE) |
-0.20% |
Technology (XLK) |
-1.56% |
Utilities (XLU) |
-1.34% |
On a somewhat positive note, the Atlanta Fed has upped its GDP estimates to -39.5% on June 26, up from yesterday’s -46.6% after the release from the U.S. Bureau of Economic Analysis. An increase in Q2 real personal consumption expenditure growth to -38% from -49.7% was offset slightly by a reduction in Q2 real gross private domestic investment growth to -58.6% from -54.4%.
This market still wants to go higher, but it needs a catalyst(s).
Have a great weekend. Be safe and stay well.
Comments |
I think the market is concerned that the democrats may win. Tim Schmitt on 6/27/2020 7:47:07 PM |
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