Market Perspective for July 13, 2020

The Dow Jones Industrial Average gained 0.04 percent on the day. The Nasdaq lost 2.13 percent, while the S&P 500 declined 0.94 percent. The Russell 2000 retreated 1.34 percent.

SPDR Healthcare (XLV) gained 0.57 percent on Monday, SPDR Financials (XLF) 0.43 percent and SPDR Industrials (XLI) 0.41 percent. Invesco QQQ (QQQ) slipped 2.06 percent.

Shares of Tesla rallied to near $1800 per share on Monday before closing at $1497 per share.

Economic data out this week includes the National Federation of Independent Businesses’ small-business index for June. The reading was 94.4 in May.

Economists predict the June consumer price index will rise 0.5 percent. They forecast for initial jobless claims fell to 1.24 million in the week ended July 11.

Retail sales for June are out on Thursday. Analysts predict an increase of 5.3 percent from May.

Several housing data points are out later in the week. The National Association of Home Builders’ confidence index for July, plus housing starts and building permits in June.

The last item this week is the University of Michigan’s advance reading of consumer sentiment for July. Analysts are looking for a slight uptick from the final June reading.

Earnings season kicks off this week with the major banks. J.P. Morgan (JPM), Citigroup (C), Wells Fargo (WFC) and Frist Republic Bank (FRC) reporting on Tuesday along with Delta Air Lines (DAL), Fastenal (FAST) and American Movil (AMX).

Wednesday brings Goldman Sachs (GS), UnitedHealth Group (UNH), U.S. Bancorp (USB), PNC Financial Services (PNC), ASML Holdings (ASML), Progressive (PGR), Bank of New York Mellon (BK) and Alcoa (AA).

On Thursday, Netflix (NFLX), Bank of America (BAC), Taiwan Semiconductor (TSM), Morgan Stanley (MS), Johnson & Johnson (JNJ), Dominos Pizza (DPZ), Abbott Labs (ABT), Charles Schwab (SCHW) and J.B. Hunt (JBHT) all report

Several regional banks report on Friday, including Citizens Financial Group (CFG), Regions Financial (RF) and First Horizon National (FHN), in addition to railroad Kansas City Southern (KSU) and homebuilder NVR Inc. (NVR).

 

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