Push the Needle | July 3, 2020

AUTHOR: Jason J. Roque, CFP®, APMA®, AWMA®
TITLE:    Investment Adviser Rep – CCO
TAGS:   TikTok, Stimulus, China, Jobs

Markets expanded for the holiday shortened week. Strong fundamentals pushed the needle, but does the forecast look bright?


Volatility overnight Sunday subsided to a clear upward trend for markets on Monday morning. The week opened up with a bang as Markets surged by over 1%. Strength was focused more in cyclical stocks as energy and financials posted a rebound from the previous week’s losses.


The rally was on Tuesday as markets celebrated a rise in pending home sales. Also, oil rose on strong industrial data out of China. This brought a close to what turned out to be an extremely profitable Q2. Albeit following an extremely damaging Q1!


Q3 started much as it closed, with an up day. News of virus increases did not send markets lower as the focus was shifted to promising data out of a Pfizer vaccine trial. The S&P 500 rose 0.5%.


Markets continued their climb on Thursday as jobs were in focus. The unemployment rate fell from 13.3% to 11.1% as the economy added nearly 5M new jobs. June re-openings really spurred on the jobs numbers. Concerning, however, is the persistently low participation rate which came in at 61.5% (also driving down the unemployment figure). Due to the rare Friday holiday, we got initial jobless claims on the same day. Those came in persistent at nearly 1.5M, but this was not enough to dampen the mood from the success of June’s re-opening.


Markets were closed in observance of Independence Day.


This was a good rebound week from the prior week’s losses. Between strong job data, vaccine hopes, and treatment improvements investors had enough positive data to push ahead. Concerns about COVID are still lingering. As case counts rise and state closures increase, look for markets to start to respond.

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Always remember that while this is a week in review, this does not trigger or relate to trading activity on your account with Financial Future Services. Broad diversification across several asset classes with a long-term holding strategy is the best strategy in any market environment.
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