Alright, I know It has been a while since my last post. I have been in Alaska for the previous couple of weeks, where you’d think I would have been more productive with the sun staying up as late as it did (12 to 1am in the morning). but unfortunately, wifi was at a hindrance with the current virus restrictions causing most of the Starbucks to be limited to dive-thur only. So with that being said let us dive into this Monday’s update of the markets.
Wall Street closed higher today mainly boosted by the tech sector. (AAPL +2.37% & SHOP +5%) Investors are focused on another big round of corporate earnings this week. US lawmaker’s stimulus negotiations are set to be released later on tonight, while Fed's monetary policy meeting on Wednesday, July 29th. The Republicans propose cutting the weekly unemployment benefits to $200 from $600. which is a bump considering the republicans didn’t want anything to do with the first round of weekly UI benefits.
Earnings for this week
Tuesday: Visa, 3M, Pfizer, McDonald’s, Starbucks, Altria, AMD, Visa, eBay
Wednesday: Fed interest rate decision; Earnings: Facebook, GE, Boeing, General Motors, Qualcomm, PayPal, Spotify, Shopify
Thursday: Q2 GDP estimate; Earnings: Apple, Amazon, Alphabet, Procter & Gamble, Comcast, Ford, Dunkin' Brands, Comcast, Kellogg, Kraft Heinz, Electronic Arts
Friday: Caterpillar, Merck, Exxon Mobil, Chevron
To leave off on a gold note, this morning gold broke it a nearly 9 year high. Trading at a record $1,944.71 an ounce beating the previous high of $1920.94 that was set back in September of 2011. Gold isn’t the only precious metal getting attention lately though. Silver is up nearly 40% since the beginning of July and is currently trading just below $25 an ounce. This is because of two things, the most important in my eyes are that the DXY which is the U.S. dollar currency index has currently fallen over 3% this month alone leading more to wonder if all of the feds spending is actually going to cause a dollar crisis. (Just to clarify for some that might not fully understand issue #1: Prices in gold & silver are priced in U.S. dollars, meaning if the price of the dollar is falling it will take more dollars to purchase gold or silver) I will follow up with more on this in a later post dedicated to the topic alone. The second major reason we are seeing uncertainty in the market currently with U.S. indexes rallying to nearly all-time highs despite most of the country along with the rest of the world being on a “lockdown”. It is easy to observe that investors are wary of market conditions and therefore are dumping their dollars for a more stable asset like gold and even silver in this case. Not only metals are seeing a rise tho bitcoin is up over 12% this week along breaking out from the high 9000’s to where its currently sitting at $11,209. We will touch more on this in a later post but for now, everyone enjoys the rest of your day and I will get started on your next update!
Happy Birthday, Dad!