Another 1.31 Million Americans Filed for Unemployment… Initial jobless claims barely dipped, falling 100,000 from 1.41 million.
What it means— It’s almost the middle of July and the economic recovery appears to have stalled. With the number of coronavirus cases in the U.S. now topping three million, government authorities are desperately trying to figure out how to put the economic-reopening genie back in the bottle. It’s not working very well.
Americans are gathering when and where they can, which leaves cities and states playing catch-up, lowering capacity limits on bars and restaurants.
Everyday July 31 gets closer. That’s when the federal government will end the weekly $600 unemployment bonus checks. If history is any guide, Congress will avoid the hard work of hammering out a new program that encourages people to rejoin the labor force and simply will extend the current program.
Surprising Groups Applied for PPP Loans, Including Bands Such as The Eagles… The federal government doled out more than $500 billion in Payroll Protection Program loans that turn into grants if certain conditions are met. The government listed all recipients.
What it means— The list of borrowers reads like a Who’s Who, but among the most surprising are musical acts such as The Eagles, Guns N’ Roses, and Imagine Dragons. The list also includes country music and rap artists.
The funds are being used to keep touring staff employed even though there are no tours, so the program is functioning as intended. It’s still odd to think that performers like Don Henley and Axl Rose, both of whom are reportedly worth $200 million, need government handouts to make ends meet.
U.S. Dollar Suffers Death Cross as 50-Day Moving Average Falls Below 200-Day Moving Average… The dollar is losing steam as U.S. coronavirus cases mount and other nations appear to be recovering.
What it means— In eight of the nine times since 1980 that the dollar went through a death cross, it has suffered a period of weakness afterward.
This time, investors are trying to figure out what’s next for the U.S. economy compared with the countries of the eurozone, Japan, and China. It looks like the U.S. will take longer to recover from the pandemic, and then we have a nasty election fight looming that could end with dramatic policy changes.
On the other side of the planet, the Chinese yuan is gaining ground and recently strengthened through an exchange rate of roughly 7 yuan per dollar. A weaker greenback leads to rising commodity prices, which could be one of the forces driving up the price of gold and foreign securities.
Brooks Brothers Files for Bankruptcy Protection…The clothing retailer filed for protection as it seeks a buyer.
What it means— Where will all the preppies shop? Let’s be clear, the company isn’t shutting down. It’s retrenching by closing 50 stores and seeking a buyout. The firm rang up $990 million in sales last year, with 20% coming from online orders. It has a storied history, having clothed 40 presidents and a solid place in the closets of most bankers and lawyers. With 500 stores and 4,000 employees worldwide, it would be unusual for the firm to simply fade away. It does raise questions about the survivability of similar firms such as Macy’s and Nordstrom with cash gobbling real estate.
New York City Police Department Limits Retirement Applications After 400% Surge… Mayor Bill de Blasio issued a call to cancel the incoming class of 1,000 officers set to graduate the academy this summer, and the city council just voted to strip the NYPD of 18% of its budget. In the face of those changes and increasingly negative sentiment, 179 officers filed for retirement during the last week of June, a 400% increase from the same period last year. Since Memorial Day, just over 500 NYPD officers have filed for retirement, 75% more than in the same period last year.
What it means— You can just imagine.
Data supplied by HS Dent Research
“When the facts change, I change my mind.
What do you do, sir?” ~ John Maynard Keynes
Our plan is “the plan will change.”
What is your plan?
Relative strength measures the price performance of a stock against a market average, a selected universe of stocks or a single alternative holding. Relative strength improves if it rises faster in an uptrend, or falls less in a downtrend. It is easily applied to individual positions in your portfolio and to sectors and asset classes.
A copy of our form ADV Part 2 is available online.
WARNING: All e-mail sent to or from this address will be received or otherwise recorded by the Investor Resources, Inc. corporate e-mail system and is subject to archival, monitoring and/or review, by and/or disclosure to, someone other than the recipient.
This message is intended only for the use of the person(s) (“intended recipient”) to whom it is addressed. It may contain information that is privileged and confidential. If you are not the intended recipient, please contact the sender as soon as possible and delete the message without reading it or making a copy. Any dissemination, distribution, copying, or other use of this message or any of its content by any person other than the intended recipient is strictly prohibited. Investor Resources, Inc. has taken precautions to screen this message for viruses, but we cannot guarantee that it is virus free nor are we responsible for any damage that may be caused by this message.
Investor Resources, Inc. only transacts business in states where it is properly registered or notice filed, or excluded or exempted from registration requirements. Follow-up and individualized responses that involve either the effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, as the case may be, will not be made absent compliance with state investment adviser and investment adviser representative registration requirements, or an applicable exemption or exclusion.