August 5, 2020
All three U.S. equity indices posted gains yesterday, with the Dow up 164.07 points, or 0.62%, for its third straight day of gains. The S&P 500 also finished up for the day, gaining 11.9 points, or 0.36%. The NASDAQ rose 38.37 points, or 0.35%, for fifth record close in a row.
The White House and Democratic congressional leaders have reported some progress in their negotiations on a new coronavirus stimulus package. “I think the expectation for the market is that we are going to get that Stimulus,” Ally Invest’s Lindsay Bell said on CNBC’s “Closing Bell” yesterday. “There may be a few weeks of waiting while these folks don’t get their extra benefits or there may be uncertainty around evictions and that uncertainty could lead to volatility.”
Better-than-expected earnings from Disney helped boost investor sentiment. The theme park and media giant reported a profit of 8 cents per share, while analysts expected a loss of 64 cents per share. Disney stock jumped 6% in today’s premarket trading.
Signs of a slowing economy are beginning to surface, with ADP’s July jobs report increased by just 167,000 in the month, well below the 1 million that had been expected by economists polled by Dow Jones. The July figure reflects a slowdown from the 4.314 million jobs added in June as the coronavirus continues to disrupt the U.S. economy.