D&D Note (7.17.2020) ~ U.S. Reports Record One-Day 77,200 New Covid-19 Cases And Both Deaths & Hospitalizations Rise Across The Country ~
Markets trade relatively flat on the day and the VIX drops below 26 while Gold rallies back above $1800 an ounce. Volume was low in trading today.
In the afternoon cash trading session markets did rally a bit but the S&P 500 has not been able to advance higher than 3237 all week. D&D’s high end target for the S&P 500 remains 3250, and since the crash the market has still not hit that level.
The U.S. reported a record 77,200 new Covid-19 cases in one-day which is drastically more than the previous record.
Across the country there is a rise in deaths, new cases, and hospitalizations.
New Jersey’s transmission rate continues to increase and at highest level in weeks which put pressure early in the day on markets.
Netflix disappoints after earnings last night after the bell missing estimates for subscriber growth with the stock immediately falling 10% in after hours trading and traded down 7% in todays trading.
The major banks all reported earnings this week and the common theme was they are all preparing for further loan losses and potential downside risk in the back half of the year.
More than 25 million Americans are about to lose the additional $600 per week unemployment benefit. Many economists are concerned this will greatly reduce consumer spending which is the main driver of the U.S. economy.
Trump has said that the next Coronavirus relief bill has to include a payroll tax cut. However, this does nothing to help the people without a job.
The battle over what to do with students and schools in the fall continues without any clear plan from the administration.
The Pentagon has officially banned Confederate flags from all U.S. military installations.
This week Tech stocks underperformed compared to the S&P 500 and the NASDAQ 100 VIX remains at high levels.
The recent trend continues when the Dollar falls the markets rally and when the Dollar rises the markets fall.
In the final minutes of trading markets paired gains closing off the highs of the day.
DOW down -0.23%
S&P 500 up 0.28% (3224.74)
NASDAQ up 0.28%
VIX down -8.79% to 25.54
Oil down -0.34% to $40.61 a barrel.
Gold up 0.68% to $1812.60 an ounce.
Texas is now ordering extra body bags and refrigerated trucks for morgue overflow as deaths in the state continue to increase.
Texas reported 151 new deaths and Florida reported 156 new deaths.
California has now ordered remote classes for most public schools.
Global Virus cases: 13.89 million+
Global Virus deaths: 592,806+
U.S. Virus cases: 3.61 million+
U.S. Virus deaths: 138,840+
~ Dave James / Principal Trader and Market Strategist