Wall Street Strategies
Hello! Sign in or Register


Afternoon Note

Should Have Been Great

By Charles Payne, CEO & Principal Analyst
7/31/2020 1:52 PM

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.

Indices

High

Current

Dow

26409.33

26085.13

S&P 500

3270.45

3230.67

Nasdaq

10,746.77

10,600.49

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. 

S&P 500 Index

 

-0.63%

Communication Services (XLC)

+0.23%

 

Consumer Discretionary (XLY)

 

-0.32%

Consumer Staples (XLP)

 

-1.05%

Energy (XLE)

 

-1.99%

Financials (XLF)

 

-0.94%

Health Care (XLV)

 

-1.68%

Industrials (XLI)

 

-1.89%

Materials (XLB)

 

-0.83%

Real Estate (XLRE)

 

-1.46%

Technology (XLK)

+0.35%

 

Utilities (XLU)

 

-1.00%

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

Issues:

NYSE

NASDAQ

Advancing

779

771

Declining

2,195

2,508

Issues at:

52 Week High

67

129

52 Week Low

15

22

Volume:

Advancing

476.61M

1.02B

Declining

1.71B

1.33B

 

Have  good weekend.  Stay safe and be well. 


Comments
$600 less demand per each person collecting unemployment will significantly effect the economy. This demand reduction will slowdown business growth and hiring. Some people may have been reluctant to be rehired because of the $600 but I don't think that many. Both republicans and democrats are using this as a political taking point and will reduce their support with low wage earners. If the economy suffers all votes will also be upset.

jerry on 7/31/2020 3:42:02 PM
 

Add Your Comment


Submitted comments are subject to moderation before posting.


Home | Products & Services | Education | In The Media | Help | About Us |
Disclaimer | Privacy Policy | Terms of Use |
All Rights Reserved.