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US Stock Markets Ended July 10, 2020
Despite documented Covid-19 cases hitting new records, equities continued to power higher, led by technology shares and positive trial results for a virus treatment. Investors continued to favor megacap growth stocks as a safety trade with some states reversing course on reopening. The top-five names in the S&P 500 now account for nearly 23% of the benchmark weight. Growth stocks outperformed value for the first four days of the week but lagged on Friday as
Gilead Science Inc.
reported that its Remdesivir treatment reduces virus deaths by 62%. The S&P 500 Growth Index still outperformed the S&P 500 Value Index by 3% for the week. However, further treatments and ultimately a vaccine will allow the economy to reopen more fully, which will likely provide a larger benefit to cyclical and value stocks. In stock news,
Walgreens Boots Alliance
fell after the drugstore announced a loss and plans to reduce headcount by 4,000 in the U.K. due to reduced traffic.
Bed Bath & Beyond Inc.
shares slumped after the home-goods retailer announced it would close 200 of its stores permanently. By contrast,
Amazon.com Inc., Netflix Inc.
hit all-time highs on Friday. Looking ahead, earnings season is set to unofficially kick-off on Tuesday with
JP Morgan Chase Inc., Wells Fargo & Co.
reporting results. With most firms removing future guidance and expectations for S&P 500 earnings to fall by 44%, individual stock swings are likely to be higher than average in the coming weeks.
Monday, July 13, 2020 @ 9:02 AM
These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.