• 1879 Advisors

6/18/20 Market Notes

US equity markets finished mixed on Wednesday after three days of rebound from last weeks plunge. Investors continue to weigh government stimulus, massive global liquidity and improving economic assessments against the risk of a second wave of virus infections. The S&P 500 Index lost 11 points (0.4%) to 3,113, the Dow fell 170 points (0.7%), and the Nasdaq added 15 points (0.2%) to 9,911. Fed Chairman Powell concluded his second day of Congressional testimony with a plea that legislators increase stimulus to insure that the frail economy continues to mend. In other economic news new housing starts missed while mortgage applications rose on ongoing refinancing and growing strength in existing home sales. The Dollar, gold and Treasuries ticked higher, with the Ten-year yield at .73 basis points. Today’s economic calendar includes the release of leading economic indicators, the Philadelphia Fed Manufacturing Index, and the initial unemployment claims report, all of which are expected to show improving conditions. New unemployment claims are anticipated to improve to a loss of 1.3 million jobs from the 1.5 million lost a week earlier. Continuing claims are expected to ease to just below 20 million as laid-off and furloughed employees are called back to work. Asian indexes were little changed overnight, while European shares and US futures fluctuate around the flatline looking for direction as China copes with a virus flare-up and Texas sees hospitalizations increase by 10 percent.


1879 Advisors

Disclosures: This market commentary is written by the 1879 Advisors® and represents the views of 1879 Advisors®. This commentary is not investment advice and should not be used as a basis to make investment decisions. Please consult with your registered investment advisor before making any investment decisions.

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