Your Thursday Blip 7/30/20

Your Thursday Blip 7/30/20

Stocks closed mixed as the Dow fell while the NASDAQ was higher. News affecting markets today was a weak GDP report and word that Congress was deadlocked on a stimulus bill. At the close the Dow was lower by 225 points at 26,313. Trading volume was higher for the day. IBD still lists markets as being in a confirmed uptrend. After the closing bell tech giants Faceplant, Amazon and Apple are going to report earnings.
Second quarter GDP growth numbers were released today and it was the worst reading since the great depression back in the 30’s. The US economy contracted at an annualized rate of 32.9% versus expectations calling for a 34.5% drop. Personal consumption fell 34.6% but the savings rate jumped to over 20% as people socked money into savings accounts. Closing business in mid-March was a kicker for the economy but in May and June things bottomed and are starting to recover.
The latest unemployment claims figure was mixed in terms of good and bad. New unemployment claims fell to 1.2 million while the number of Americans continuing to claim unemployment benefits rose to 16.88. The July official labor report will be out on Friday next week and will give a clearer picture of the job situation. Today’s numbers however indicate that challenges remain as the economy opens in fits and starts.

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