July 28, 2020
The U.S. stock market opened lower this morning after yesterday’s gain, as corporate earnings continue to be reported the Federal Reserve starts its two day policy meeting. The Fed decided to continue to keep rates at 0%-0.25% in the June meeting and it is expected to remain low as the as the country works through the coronavirus pandemic.
The Republican Majority Leader Mitch McConnel revealed the Health, Economic Assistance, Liability Protection and Schools Act (HEALS Act) late Monday. The $1 trillion stimulus package includes 70% wage replacement, $1200 stimulus checks and $500 payments for dependent children. The bill sets aside funds to help schools with costs associated with safely reopening. The bill also allocates $190 billion for Paycheck Protection Program loans and $100 billion for loans to seasonal businesses.
The Conference Board is expected to announce the Consumer Confidence Index and it is forecasted to be lower than June’s announcement. In June the index was reported at 98.1 and is predicted to be at 94.3. The previous two months showed consumer confidence improving from April’s low caused by the pandemic. The reversal is likely due to the rising numbers in Covid cases and pullback in the reopening process.