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.
This material is intended to be for informational purposes only and is intended for current or prospective clients of Argent Trust Company. This information is obtained from sources believed to be reliable, and its accuracy and completeness are not guaranteed. Information does not constitute a recommendation of any investment strategy, is not intended as investment advice and does not take into account all the circumstances of each investor. Forward‐looking assumptions are Argent Trust Company’s current estimates or expectations of future events or future results based on proprietary research and should not be construed as an estimate or promise of results that a portfolio may achieve. Actual results could differ materially from the results indicated by this information. Investments can go down as well as up. Past performance is not a reliable indicator of future results.