The Global Update

July 1, 2020

• Stocks ended June with its best quarter in over 20 years.
  The ADP employment change report showed an increase of 2,369,000, slightly below expectations of 3,500,000.
• The June PMI manufacturing index came in at 49.8 nearly in line with 49.6 consensus.
• The June ISM manufacturing index came in at 52.6, beating expectations of 49.
• May construction spending report show a decrease of -2.1% below expectations of an 0.8% increase.

July 2, 2020

• Stocks advanced with the Nasdaq Composite reaching a new record high on report of outstanding job growth numbers.
• June nonfarm payrolls increased 4,800,00 when a gain of 3,000,000 was expected.
• The unemployment rate was cut to 11.1%, below the anticipated 12.4%.
• Jobless claims in the week ended June 27 were 1,427,000 when 1,400,000 were predicted.

July 3, 2020

• Markets closed

July 6, 2020

• Markets opened sharply higher as the Nasdaq advanced toward a new record high.
• The June Institute for Supply Management non-manufacturing index came in at 57.1 , besting the 50.1 consensus.
• Stocks overall are outperforming or overperforming the news.

July 7, 2020

• Nasdaq futures hit a record high in overnight trade before declining during the market day as tech shares outperform.
• The Organization for Economic Cooperation and Development made downbeat predictions about unemployment rates in most of the world’s advanced economies, likely the reason for the market’s decline.
• The JOLTS report came in with a positive shocker, with 5.397 million job openings against expectations of 4.9 million openings.

July 8, 2020

• With very little news on the economic front, stocks found support as several Federal Reserve presidents hinted at more stimulus.
• The May consumer credit report shows a decline of -$18.2 billion, slightly higher than the -$18.3 billion consensus figure.

July 9, 2020

• Weekly jobless claims fell from their highs in April. Jobless claims in the week ended July 4 were 1,314,000, less than the 1,375,000 claims expected.
• The Fed balance sheet currently stands at $6.921 trillion.
• The May wholesale trade report came in as anticipated, a 1.2% decline.
• Markets are lower over concerns about the state of the global economy.

July 10, 2020

• Markets are up as attention shifts toward Q2 earnings season.
• The Producer Price Index, which was expected to rise 0.4%, actually showed a decline by -0.2%.
• Reporting mid-day, the Dow is up 282 points (+1.10%), the S&P 500 is up 22.46 points (+0.71), and the Nasdaq is up 26.77 points (+0.25%).

July 13, 2020

• U.S. stock indices start the day higher with the Nasdaq momentarily reaching a new record high.
• Investors are turning their attention to major U.S. companies reporting Q2 earnings this week.
• Major banks begin reporting tomorrow.

July 14, 2020

• Markets advanced as investors digested second-quarter results from the biggest banks.
• Bank earnings have come in mixed but overall better than expected as more recent pressure is linked to concerns about the state of the global economic recovery.
• The small business optimism index increased 6.2 points in June to 100.6 when 96.7 was expected.
• The June consumer price index rose 0.6% when an increase of 0.5% was anticipated.

July 15, 2020

• A rocky ride altogether today as Goldman Sachs’ blowout earnings amid other positive bank earnings and promising vaccine news supported the market.
• Industrial production came in at 5.4%, higher than consensus; manufacturing at 7.2% was stronger than expected, and capacity utilization was at 68.6%.

July 16, 2020

• The broader market is lower due to concerns about the recovery in the global economy.
• Jobless claims in the week ended July 11 were 1,300,000 million when 1,288,000 million were expected.
• Retail sales in June were up 7.5% when a gain of 5.2% was anticipated and the July Philadelphia Federal Reserve business outlook index was 24.1, which compares to the estimate of 20.0.

July 17, 2020 (Mid-day)

• Stocks mid day are largely unchanged as investors attempt to digest economic news for a week that may end up mixed.
• Housing starts in June were 1,186,000 when 1,195,000 were expected and the more important permits number was 1,241,000 when 1,298,000 were anticipated.
• July consumer sentiment index came in lower than consensus at 73.2 when 70 was expected.

July 20, 2020

• Markets are higher as investors pin their hopes on central banks and governments doing more to support the economy.
• Lawmakers are scheduled to begin discussions for a second round of economic stimulus to help relieve households and businesses.
• No major economic reports scheduled for today.

July 21, 2020

• The S&P 500 has moved above June its high at 3220.50, signalling a potential resumption of the uptrend.
• Equity markets in the US and abroad jumped after European Union leaders reached a historic deal on a massive 750BN ($860BN) economic recovery plan.
• Discussions in Washington on fiscal stimulus will continue this week, hopefully agreeing to a solution before current programs expire at the end of the month.
• The Chicago Fed national activity index, which tracks overall economic activity and inflationary pressures, came in at 4.11, as compared with the previous month’s revised 3.50.

July 22, 2020

• The broader market advanced while the tech-heavy Nasdaq is taking a rest after reaching record highs last week.
• Existing home sales came in at 4.720 million, above 3.910 million consensus.
• After hours, stock futures are holding steady as Microsoft slides 2% after reporting earnings.