The NASDAQ hit a new record this Wednesday, fueled by Apple, which also hit a new record. Among rising Coronavirus Cases, the Dow Jones still has a negative month to date (MTD) chart, however, after a volatile week, the Dow closed at 26,075 on Friday night, ending the week to date in the green. The NASDAQ closed up around 0.66% Friday afternoon. Here's a brief recap of everything you need to know:
The WHO warns of a possible "second wave" of Coronavirus cases- it's no secret that the stocks felt the repercussions from the first wave; experts warn cases could go higher, yet stocks have yet to dip. Even the futures for July 13th seem to rise, despite the spike in cases. The answer is simply that investors are shaking it off- more simply, investors are not letting this new wave of cases "bother them", whereas during the first wave, the stock market posted some of its worst numbers in history. The futures for tomorrow are in the green about 191 points for the Dow, as of 2AM ET, July 13th. The NASDAQ and S&P futures both rise above 0.5%.
The Gains in the Market Aren't New Gains
The market has been volatile these past few weeks, and after closing off the month of June on the base of an incline, markets fell to around 25,680 on July 9th (Dow Jones). Let's take a look at the one month chart of the Dow, provided by Google Finance:
Noticing the decline from around June 14 to June 26, this was the time where second wave Coronavirus concerns were growing- the stock have been on the rise since, disregarding the slight few dips. Furthermore, this graph proves our point of the recent market volatility. Thankfully, stock futures are up, and the rally continues- this time reminds us that despite negative Coronavirus news, investing and the US economy will stop at nothing.
Amazon and Retailers
If there's anyone who's been managing to stay afloat during this time, it's the owners of E-Commerce stores. A huge uptick in the use of online shopping has been seen throughout the pandemic, and for good reasons. Amazon itself has led the NASDAQ to new highs throughout this quarter, along with tech companies, and other big names like Apple.
Among all this hopeful news, there's bound to be some grim. With an emerging second wave, more and more retailers have had no choice but to shut down many of their store locations again, after being mandated, or just not having enough revenue. Any of these retailers with stock can expect to see a sharp decline. If people aren't willing to go out, or if the stores aren't open, there's going to be a sharp decline, because people are moving away from retailers to E-commerce, the wave of the future.* Some small businesses have even been going out of business, despite the government trying to provide financial relief- we've even seen some larger companies go out of business. It's unclear how long it will be until the situation gets better, but if investors shake it off, the stocks may not feel as big as a blow as they did last time.
The futures for the Dow, S&P, and NASDAQ are up around 0.8% (Dow), and 0.67%. (S&P and NASDAQ). The markets will continue to rally as investors "shake off" growing concerns about another Coronavirus emergence.
Summary: A Coronavirus reemergence has health experts worried, yet investors and stocks continue to rally the market. Apple pushed itself and the NASDAQ to new records, and the futures for July 13th are up keeping the market rally. The gains in the market, the Dow specifically are not new, after a steady incline since the fall towards the end of June. Retail stocks will most likely feel the blow, as they did with the first wave, while the E-commerce sector is expected to do well, for obvious reasons.
*BizRoca is not giving financial recommendations. These are our opinions, and should not be taken seriously. For serious financial recommendations, consult a financial expert.
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