Market Recap for Week Starting 7/6
This week has seen stocks falls slightly with the two of major averages ending below their 7/6 open. The NASDAQ was up 1.45% for the week, while the Dow and S&P 500 were down. The worst performing sectors this week have been the Consumer Discretion and Utilities. The Technology sector continues to outperform the major indexes with another strong week.
Many states are continuing their re-opening despite the number of coronavirus cases slightly increasing over the past few weeks. The unemployment claims are dropping at a much higher rate than in past weeks. New jobless claims released on 7/9/2020 were 1.3 million, which was lower than the 1.39 million consensus forecasts by analysts. The number of claims dropped by 99,000 from a week ago. Continuing claims are now down to 18.06 million, which is down 3.86% from last week.
There was plenty of optimism following last week’s release of the June jobs report. The current unemployment rate has dropped to 11.1%, due in part to the 4.8 million jobs added last month. These strong numbers were driven by the 2.1 million new jobs created in the leisure and hospitality sectors.
Interest rates increased throughout the week. On Monday, the 10-year Treasury yield was 0.69% which decreased to 0.62% on Thursday. The long-end rates decreased with 30-year bonds dropping from 1.45 to 1.32 on Thursday. Mortgage rates for 30-year fixed, 15-year fixed, and 5/1 ARM loans all had mild decreases in their rates.
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