Blog

Signs of a Slowdown, But Recovery Still on Track

This week, the news was much the same as it was last week. This is actually good news, as things had been getting worse. As such, this stabilization represents progress. It also indicates that, in many states, outbreaks are being contained.

 

Medical Risks Not Derailing Economic Recovery (So Far)

This week, the medical risks continued to rise. Notably, outbreaks in Arizona, California, Florida, and Texas got worse, and other states also showed faster outbreaks. As such, health care capacity is now a concern in several cities. Nationally (as of July 15), the number of new cases broke 70,000 for the second time, while the daily spread rate is holding around 2 percent per day. Further, even as the number of tests has risen, the positive rate is holding at more than 8 percent, which is well above the 5 percent achieved earlier. Most of this increase is a result of a handful of states, but several other states are now reporting faster case growth. Overall, the breadth and magnitude of the outbreaks continue to increase the risk at a national level.

Will State-Level Outbreaks Become National Second Wave?

This week, we saw the medical risks continue to rise. Notably, outbreaks in Arizona, California, Florida, and Texas continued to get worse. All had significant spikes in cases in recent days, and health care capacity has now become a concern in some cities. Further, multiple other states are seeing expanded case growth. Nationally (as of July 9), the number of new cases broke above 60,000 for the first time, and the daily spread rate reached 2 percent per day. Similarly, even as the number of tests continues to rise, the positive rate is also increasing. The breadth and magnitude of the outbreaks continue to increase the risk at a national level.

New Legislation Extends PPP Loan Applications Through August 8, 2020

The Paycheck Protection Program (PPP) was created to provide loans to support small businesses and save jobs during the COVID-19 pandemic. New legislation seeks to clarify some of the confusion created by ongoing interpretation and retroactive adjustments to this program.

Medical Risks on the Rise, But Economic Recovery Persists

Over the past week, the medical risks have been on the rise. Notably, outbreaks in Arizona, California, Florida, and Texas continued to get worse. All have shown significant spikes, and now health care capacity has become a concern in some cities. Further, multiple other states have also seen expanded case growth. Nationally (as of July 1), the number of new cases broke above 50,000 for the first time, and the daily spread rate is now approaching 2 percent per day. Similarly, even as the number of tests continues to rise, the positive rate is also increasing. The breadth and magnitude of the outbreaks continue to increase the risk at a national level.

 

Weekly Market Update, July 6, 2020

General Market News

Market Update for the Quarter Ending June 30, 2020

​Positive June caps off strong quarter for markets

June was another positive month for markets, despite concerns about the spread of the coronavirus causing some volatility near month-end. All three major indices posted positive returns for the month. The S&P 500 returned 1.99 percent, the Dow Jones Industrial Average (DJIA) gained 1.82 percent, and the Nasdaq Composite rose by 6.07 percent. On a quarterly basis, all three indices showed strong rebounds following March’s volatility. The Nasdaq led the way with a quarterly gain of 30.95 percent, while the DJIA gained 18.51 percent and the S&P increased by 20.54 percent.