John Hancock: Weekly Market Recap Week Ended July 10th
NASDAQ records
The NASDAQ’s weekly outperformance lifted that index to new record heights. The NASDAQ has surged nearly 59% since a recent low on March 23, owing in part to strong results from a handful of big technology stocks that have a large weighting in the index.
Earnings drought
Expectations are exceedingly low heading into earnings season, which opens this week. Earnings of companies in the S&P 500 are expected to drop 44% compared with last year’s second quarter—the biggest decline since the fourth quarter of 2008, according to FactSet. Major banks will start to report quarterly results on Tuesday.
Coronavirus catalyst
The course of the coronavirus pandemic continued to drive U.S. stocks. Record numbers of new cases in several Southern and Western states weighed on stocks, while headlines about vaccine development provided a positive catalyst
Stimulus 2.0
U.S. Treasury Secretary Steven Mnuchin said on Thursday that he expects the Senate will approve another coronavirus-related stimulus initiative late this month. Leaders are considering another round of payments to Americans, as enhanced unemployment benefits are due to expire soon unless Congress acts to extend them.
Source: https://www.jhinvestments.com/weekly-market-recap