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The Dow Jones now could slip as the United States hit 2.63 million coronavirus cases.
Wall Street had its best quarter in decades after a sharp rebound from the COVID-19 market crash in March. Investors must now face a slate of potential threats in a resurgence of coronavirus cases, ongoing geopolitical worries out of China, and the upcoming election. More on these developments below.
Before we get into this story and more, here are the numbers from Tuesday for the Dow, S&P 500, and Nasdaq:
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Now here's a closer look at today's most important market events and stocks. We'll also discuss the stories that slipped under the radar of the mainstream financial press on Wednesday.
The Top Stock Market Stories for Wednesday
- This morning, ADP announced that private payrolls increased by 2.37 million in June, a figure that is optimistic as markets prepare for Friday's jobs report. While that is positive, the company did report that it revised the number of losses in its May jobs report up from 2.76 million to 3.065 million. For the month of June, the figures looked positive in both the hospitality industry and in small business generation. Both industries saw respective job gains of 961,000 and 937,000 new hires. The new report puts a large focus on Friday's official jobs report from the U.S. Department of Labor. Prior to the outbreak of COVID-19, the official U.S. unemployment rate sat at 3.5%. Today, that figure is 13.3% and will likely fall under 13% later this week.
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- Meanwhile, Senate Democrats pushed through the extension of the Paycheck Protection Program. Hours before the federal loan program was set to expire, the Senate passed a measure to extend the program - which still has about $130 billion to be allocated - through Aug. 8. The bill will now head to the House of Representatives and would then require the signature of U.S. President Donald Trump.
- Finally, we're keeping a close eye on the latest coronavirus news. Around the globe, cases topped 10.49 million, with the United States hitting 2.63 million. This week, Dr. Anthony Fauci said that the United States could soon see the rate of contractions hit more than 100,000 in a day should the U.S. fail to keep social distancing measures in place. At the moment, the United States is seeing roughly 40,000 new cases per day.
Stocks to Watch Today: M, UAL, FB
- First up, in a busy day of earnings, Macy's Inc. (NYSE: M) reported a big loss for the first quarter. The firm reported an EPS loss of $2.03, while its revenue came in at expectations from its estimates last month. The company has been crippled by the COVID-19 outbreak, and investors are worried that consumer behaviors could cripple retail traffic through the end of the year.
- Shares of United Airlines Holdings Inc. (NYSE: UAL) are moving higher after the company announced plans to add roughly 25,000 flights to its schedule starting in August. Right now, the airline giant is struggling due to the slump in domestic and international travel. The company's August schedule is sitting at roughly 48% capacity for domestic flights when compared to the same period in 2019.
- Shares of Facebook Inc. (NASDAQ: FB) are still under pressure due to advertising boycotts by corporations. A large number of companies have pulled marketing from the social media outlet and others due to anger about the company's ability to control hate speech on its platform. CEO Mark Zuckerberg has agreed to speak with organizers of the protest.
- Look for earnings reports today from Constellation Brands Inc. (NYSE: STZ), General Mills Inc. (NYSE: GIS), Greenbrier Cos. Inc. (NYSE: GBX), and Unifirst Corp. (NYSE: UNF).
Why Startups Can Have an Edge During a Recession
Uber, Airbnb, Slack, Pinterest, and Venmo have something big in common - something other than their big names.
These startups were founded during the last recession.
And now, some of the most iconic companies of our time could launch into Fortune 500s during days like today.
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.