As we make our way through the final two weeks of July, there is so much going on. We’ll try to break it all down in under 2 minutes, next!
Renewed shutdowns; pauses in reopening’s; and Covid-19 numbers tracking higher have all led to a general loss of confidence, as evident by the preliminary University of Michigan consumer confidence reading – which fell 5 points. This calls into question the ability to sustain the momentum seen in recent data releases. But, what’s interesting here, is the recent outperformance of value stocks – or those more dependent on the strength of economy – over growth stocks last week, and by a pretty wide margin when comparing the ishares S&P 500 value to the ishares S&P 500 growth ETF. Foreign stocks also continue their recent outperformance as they have done a much better job in controlling Covid-19 growth.
Ultimately, the higher the Covid-19 numbers track in the U.S. and the greater the amount of confidence lost, the more critical it is for continued government support. So, for the week ahead, we need to monitor the process of any stimulus package coming from DC, and what happens to the enhanced unemployment benefit as that is set to expire in the near term.
This has been your Weekly Market Minute, and we’ll see you on Monday – prefer to listen or watch? Check out our video & audio formats below:
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