Weekly Market Recap
Deal of the Day: Chase is now offering a $200 cash bonus when opening a Total Checking Account. No minimum deposit and all deposits are FDIC insured up to the $250,000 per depositor maximum.
Update on the Second Stimulus
It looks like a second round of stimulus checks may be coming after all. On Monday, Senate Majority Leader Mitch McConnell introduced the HEALS Act, which would provide another $1,200 stimulus check to many Americans (among other stimulus additions). As of now, it seems there is general bipartisan support.
The HEALS Act would also provide additional stimulus support for things like expanded unemployment, additional government Paycheck Protection Program loans to small businesses, as well as financial assistance to help schools reopen.
As it stands right now, individuals will get $1,200 and couples will get $2,400, as well as $500 for each dependent – just like last time. Also, like last time, that dollar amount will begin to phase out based on income level. Here’s where the proposal stands as of this moment:
- Individuals with AGI of up to $75,000 would be eligible for full payments. The dollar amount will begin to phase out once that income level hits $99,000.
- Married couples filing jointly and making up to $150,000 would receive the full payment. If couples filing jointly make over $198,000, they would not receive checks.
There are still more specific details coming out about this, so we’ll be sure to update you as things are confirmed. For now, though, it is looking like a second round may get approved.
Not a Great Start This Week
Stocks ended down on Tuesday and the general sentiment isn’t great this week so far. The NASDAQ posted the biggest loss of the major indexes on Monday, sliding about 1.3% overall. In addition, some of the bigger companies missed Wall Street’s earning estimates–which were already tapered based on the economic situation.
3M and McDonald’s were two companies that surprised the markets by missing estimates this week. While there’s still a half of a week to go, it’ll be important to keep focusing on the news and earnings reports from some of the larger companies.
Treasury Yields Slipped
The Fed kicked off its two-day meeting on Tuesday, which should provide some insight into how the country’s monetary policy will evolve in the coming months. While the Fed isn’t expected to change its benchmark rate, Treasury yields fell on Tuesday–including the 10-year Treasury note yield, the 2-year note rate, and the 30-year bond rate.
The general sense is that this has to do with concerns over economic growth stalling, coronavirus cases still rising, and recent consumer confidence dropping. By the end of this week, we should have a better sense of how the Fed feels about our future economic state, so once again – stay tuned.
What to Watch for this Week
Here’s what else you should look forward to this week:
- Wednesday, 7/29: The Fed will conclude their two-day policy meeting–we can hope for some quotes from the Fed Chairman Jerome Powell; we’ll also see a pending home sales report from the National Association of Realtors.
- Thursday, 7/30: The U.S. Bureau of Economic Analysis will provide their 2Q advance GDP estimate–this should give further clues into the future state of the economy; and as with each Thursday, we’ll see the weekly unemployment claims from the U.S. Department of Labor.
- Friday, 7/31: Consumer Sentiment Index results from the University of Michigan; the U.S. Bureau of Economic Analysis is also going to provide reporting on personal income and consumer spending.
Invest Your Money
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|Vanguard Personal Advisor Services||High net worth, buy and hold investors|