What should have been a great day, helped in large part to blow out earnings from Apple (AAPL), Amazon (AMZN), Facebook (FB), and Google (GOOG/L) has turned into a down day for the Dow and S&P 500, and the Nasdaq is in and out of the green, as Congress left without passing a new coronavirus relief plan or extending the existing one.  Democrats are sticking to their request for $600 additional unemployment assistance, which expires today, while the Republicans have proposed $200.

Meanwhile, jobless claims for the past two weeks have gone up, as Covid-19 cases rise and more states rollback their openings. And the U.S. GDP declined 32.9% in the second quarter, a record. Still, no relief, even temporary. 

So, now the indices are headed south.

Also on Capitol Hill, Dr. Anthony Fauci, head of the National Institute for Allergies and Infectious Diseases, Dr. Robert Redfield, head of the Centers for Disease Control and Prevention, and Admiral Brett Giroir, testing czar for Health and Human Services, are testifying today at special House Panel regarding the Covid-19 pandemic.  While the testimony from Fauci that the fast track to a vaccine will not lead to one that is not safe, the concern is, ‘“While it remains unclear how long the pandemic will last, COVID-19 activity will likely continue for some time.” 

Nine of the 11 sectors of the S&P 500 are still in the red.  Communication Services and Technology are holding on to some gain thanks in large part to the earnings from the 4 horsemen. Once again Energy is the worst performing sector, despite WTI trading up and fractionally over the $40 level. 

Breadth is negative as is the down volume, yet there are still more 52 new highs than lows.

Have  good weekend.  Stay safe and be well.