The Morning View: July 30, 2020

  • July 30, 2020

BY: MARSHALL BARTLETT
Senior Vice President / Portfolio Manager

Announced this morning, Initial Jobless Claims were 1,434,000 for the week ending July 25th, a slight increase from the previous week. Continuing Claims were 17,018,000 as of July 18th also an increase from the 16,151,000 reported the previous week. In addition, the first reading on second quarter GDP was -32.9%, slightly better than expected but still is the largest decrease since the Great Depression era, driven primarily by a drop in consumption. Overall, jobless claims remain elevated and slightly increasing, noting labor market pressures. As local economies move back and forth through their re-opening process, people who went back to work may be out of work again. The large drop in second quarter GDP was expected, but the size of the decrease is still sobering. The economy is expected to eventually recover, but the Federal Reserve remains on-hold with respect to interest rates and ultra-accommodative with their balance sheet for the foreseeable future. In all, bond yields ticked lower and equity futures are lower as we head into the market open.

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