Market Perspective 05/09/2020
The US federal government recently shifted gears to allow individual states to open back up based on meeting certain criteria established in the guidelines, Opening Up America Again. Specific to lifting restrictions, states are making separate decisions about when and how they will re-open. Data at the local level varies materially from region to region. Inevitably, it will be a difficult and sensitive balancing act to sustain maximum health well-being and expand economic activity.
It is sometimes said that complex decisions will rarely be optimally right, but through discernment, you can avoid being wrong. This clearly applies to the re-opening of the US economy, there will likely be new issues, successes, and learning opportunities. Fortunately, we have 50 different state approaches that will guide and inform the overall direction and pace.
We hope this most unique Mother’s Day Weekend, where we pause to honor and thank those amazing women in our lives, allows you the opportunity to enjoy the company of loved ones, whether it is in person, via video, or phone.
Market Perspectives
Friday jobs data showed the unemployment rate increased to 14.7%, a post-war high (1)
Stock markets advanced Friday appearing to shrug off this news, possibly due to stock prices already reflecting this information
Regarding corporate earnings for the first quarter, 85% of S&P 500 companies have now reported earnings with a weighted average growth rate of -13.6% compared to first quarter 2019
The US stock market (S&P 500) posted a gain this week after posting negative returns the prior two weeks
Stock market advancements are occurring amidst weakening economic data, highlighting the lack of correlation that can occur between the stock market and the economy
China and the US discussed the ongoing implementation of phase one trade agreement
Both sides agreed on progress being made and despite the current pandemic, expect to meet obligations in a timely manner
In the US, there has been a steady increase in people moving around since hitting lows for the year in mid-April
According to Apple Mobility data, over the past month, walking and driving routing requests have increased by 88% and 118%, respectively(2)
Various indexes may have been chosen that are generally recognized as indicators or representation of the stock market in general. Indices are typically not available for direct investment, are unmanaged and do not include fees or expenses. Some indices may also not reflect reinvestment of dividends.
Source 1: https://www.bls.gov/ (5/8/2020)
Source 2: https://www.apple.com/covid19/mobility (5/8/2020)
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