Headlines discussed at LNWM’s Monday morning briefing:
— The US economy shrank by 9.5% in the 2nd quarter of 2020 (vs. 2nd qtr. 2019), the highest quarterly drop ever, amid Covid-19 shutdowns; outlook calls for better results here out, depending on trajectory of the virus.
— S&P 500 earnings for 2nd quarter 2020 are expected to be down 36% (vs. 42% initially anticipated), with a handful of tech giants greatly exceeding profit expectations.
— US consumer spending rose 5.6% in June but remains 7% below pre-Covid-19 levels; consumer sentiment in July fell, due to ongoing spread of Covid-19.
— New weekly claims for US unemployment benefits rose to 1.4 million, the 2nd straight weekly increase, with some 30 million workers now collecting benefits.
— Extra unemployment benefits of $600/week expired at the end of July, as Congress meets this week to agree on new round of aid for layed off workers and their families.
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