Coronavirus uptick: O2 Wealth Economic Update, July 17, 2020

U.S. and World News

  • iStock-1218500852Due to the uptick in coronavirus cases, a growing number of U.S. states and localities have mandated the use of masks and face coverings while in public. Georgia Governor Brian Kemp is suing Atlanta Mayor Keisha Lance Bottoms over the city’s mask mandate – which is punishable by a fine or up to six months in jail – claiming the measure is more restrictive than a state order that “strongly encourages face coverings” but does not require them. On the corporate side of things, Walmart, Kroger and Target announced Wednesday that they would will require customers to put on a mask or face covering inside stores.
  • “What we really need are drugs that, when given early, can prevent a symptomatic person from requiring hospitalization or very dramatically diminish the time that they’re symptomatic,” Dr. Anthony Fauci told Mark Zuckerberg during a Facebook Live interview. Looking for a treatment, he expects results for a clinical trial on monoclonal antibodies by late summer or early fall. The laboratory-produced proteins – described as “precise bullets” that can be developed from antibodies from other people who’ve been infected by COVID-19 – are hoped to be used to treat sick coronavirus patients as well as for prophylaxis.

Markets

  • Markets rose again this week. The S&P 500 jumped 1.27% and closed at 3,224. The Dow Jones rose 2.32% and closed at 26,671. Year-to-date, the S&P 500 is up 0.88% and the Dow Jones is down -5.3%.
  • Interests rates were fell slightly from last week. The 5 year and 10 year U.S. Treasury Notes are yielding 0.28% and 0.62%, respectively.
  • The spot price of WTI Crude oil inched higher this week. Prices rose 0.12% and closed at $40.60 per barrel. Year to date, Oil prices are down -33.51%.
  • The spot price of Gold rose 0.69% and closed at $1,811.04 per ounce. Year to date, Gold prices are up 19.36%.

Economic Data

  • Business inventories declined by 2.3% in May
  • Retail sales increased 7.5% month over month in June.
  • The Philadelphia Fed manufacturing index fell by 3.4 points, better than concensus estimates for a larger decline.
  • Initial Jobless claims fell by 10,000 to 1.3 million in the week of July 11.
  • Industrial production increase by 5.4% in June, mostly lead by a large increase in automobile manufacturing.
  • CPI rose by 0.24% month over month in June.

Fact of the Week

  • Then market cap weighted performance of the top 5 stocks in the S&P500 (Microsoft, Apple, Amazon, Facebook, Google) has been +32% year to date. The performance of the remaining 495 stocks in the index has been -7.7% year to date. (Source: Strategas)

Rich Gartelmann CFP® – (630) 844-5730 rgartelmann@oldsecond.com
Steve Meves CFA® – (630) 801-2217 smeves@oldsecond.com
Brad Johnson CFA®, CFP® – (630) 906-5545 bjohnson@oldsecond.com
Jacqueline Runnberg CFP® – (630) 966-2462 jrunnberg@oldsecond.com
Ed Gorenz – (630) 906-5467 ejgorenz@oldsecond.com
Mike Demski – (630) 966-2430 mdemski@oldsecond.com
Mike Cava CFA®, CFP® – (630) 281-4522 mcava@oldsecond.com

Visit Old Second Wealth Management

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