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The Dow Jones Industrial Average faces pressure after a wild trading session on Thursday. Ongoing worries about COVID-19 and the possibility of a continuation of rising cases continue to rattle investor sentiment.
Meanwhile, mortgage rates are taking a dive as well. Analysts are concerned about economic recovery. More on everything moving the Dow today, below.
Here are the numbers from Thursday for the Dow, S&P 500, and Nasdaq:
|Index||Previous Close||Point Change||Percentage Change|
Now let's take a look at what I consider to be the most important market events to start your day.
The Top Stock Market Stories for Friday
- Mortgage rates continue to plunge across the United States as the threat of a second wave of COVID-19 rattles the housing market. The 30-year fixed mortgage – the most widely adopted home loan – fell to 3.03%, according to Freddie Mac. That is the lowest level for mortgage rates since the firm started tracking the numbers in 1971. The falling mortgage rate isn't the only thing that is eye-popping. The 10-year U.S. bond is now sitting at just 0.57%, raising concerns about the economic recovery in the United States in the foreseeable future.
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- At least 12 states have hit records for new COVID-19 cases, based on a seven-day average. Johns Hopkins University reported this morning that the number of U.S. cases has now surpassed 3.11 million. However, the broader global pandemic is only getting worse, according to the World Health Organization. This morning, Italian leadership said that they plan to extend their current state of emergency past its July 31 deadline. Meanwhile, India has set a new record for contractions, while cases are spiking in Hong Kong, prompting the local government to close down schools once again.
- Finally, Democratic nominee Joe Biden has called for an end to "shareholder capitalism" in a speech appealing to the middle class. Biden slammed U.S. President Donald Trump for his focus on helping the stock market rebound. "Trump has been almost singularly focused on the stock market, the Dow and Nasdaq. Not you. Not your families," Biden said on Thursday. "I came from here in Scranton. Not the wealthy investor class. They don't need me." Biden recently outlined a plan for a $700 billion government plan to support U.S. technology and manufacturing bases. He has also collaborated with Senator Bernie Sanders (I-VT) and other liberal leaders on several new policy ideas.
Stocks to Watch Today: UAL, DIS, RFIN
- United Airlines Holdings Inc. (NYSE: UAL) announced it has reached a deal with a union representing 13,000 pilots on voluntary furloughs and updates to early retirement plans. The airline industry has taken a significant hit over the last few months due to coronavirus. Shares of UAL were off about 7% Thursday and continued to slide in pre-market hours on Friday.
- The Walt Disney Co. (NYSE: DIS) is still moving forward to reopen Disney World in Orlando, Fla., on Saturday. The ongoing pandemic has forced Disney to shut down its theme parks, delay film production, and operate its flagship ESPN channel with reruns of past sports events. The company has not been able to open its California park due to state oversight. However, with COVID-19 cases bouncing off new record highs in Florida, the threat of worsening the spread continues to rattle investor sentiment.
- Shares of Redfin Corp. (NASDAQ: RDFN) are off 1% in pre-market hours after the company stock bounced off an all-time high. The real estate market continues to rebound from the COVID-19 outbreak, and the big shift has been fueled by a dramatic exodus from large cities across the United States. More home searches are taking place in rural areas and the suburbs of cities.
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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.