Day Ahead: 3 Things to Watch for July 10

Day Ahead: 3 Things to Watch for July 10  | Jul 09, 2020 21:34

Day Ahead: 3 Things to Watch for July 10

By Christiana Sciaudone --  The market keeps showing a whole heaping lot of love for tech, with the Nasdaq hitting a record for a second day running.

The Dow Jones, on the other hand, fell 1.4%, dragged down by Walgreens Boots Alliance Inc (NASDAQ:WBA), 3M (NYSE:MMM) and Dow Inc (NYSE:DOW).

Coronavirus infections and deaths keep coming, with top U.S. pandemics expert Anthony Fauci, speaking on a podcast hosted by The Wall Street Journal, saying that new Covid-19 cases were seeing “exponential growth.” 

“It went from an average of about 20,000 to 40,000 and 50,000. That’s doubling. If you continue doubling, two times 50 is 100,” Fauci said. “Any state that is having a serious problem, that state should seriously look at shutting down. It’s not for me to say because each state is different.”

Data shows that more than 3 million Americans have already been infected by Covid-19, with a death toll exceeding 133,000. On Wednesday, the United States reported a daily record of more than 60,000 cases. 

Walgreens and Bed Bath & Beyond Inc (NASDAQ:BBBY) dropped as retailers suffered from a weak quarter. Banks are up next week.

Here are three things that may move markets tomorrow:

1. Biden bashes Wall Street

Presumptive Democratic Presidential Nominee Joe Biden ripped rival Donald Trump and Wall Street as he started rolling out his economic plans, if elected. The federal government would spend $400 billion on manufacturing and $300 billion on research and development under an economic plan, the former Vice President said, according to USA Today. 

“It’s time corporate America paid their fair share in taxes,” Biden said. “The days of Amazon (NASDAQ:AMZN) paying nothing in federal income tax will be over.”

Biden has an “incredibly stable and unusually large” lead over Trump, according to the polling website FiveThirtyEight. Of course, the media also thought Hillary Clinton was bound to win four years ago. 

2. Oil finally slides

Eyes are on oil after prices slumped as much as 3% on Thursday, the most in over two weeks, finally seeming to acknowledge that the nascent economic recovery in the U.S. is being quashed as infections rise and cities shut back down. 

“The virus spread is not plateauing as many populous states (Texas and Florida) are still seeing significant increases in hospitalizations,” said Ed Moya, senior market strategist at New York-based OANDA said in a note on oil.   

U.S. gasoline demand was falling in areas where lockdowns were being reinstated, Lachlan Shaw, head of commodity research at National Australia Bank (OTC:NABZY), was quoted saying by Reuters, although demand for fuels continued to recover in the economically-crucial East Coast. 

3. Banks Ahead!

Banks were in the red Thursday ahead of earnings reports that kick off next week. The S&P 500 Financials was down 1% as parts of the U.S. close back down amid growing coronavirus infections across the country. Citigroup Inc (NYSE:C) dropped 2.8% and Wells Fargo (NYSE:WFC) fell 2.1%

Bank of America (NYSE:BAC) fell 1.4% after DA Davidson downgraded the stock to neutral from buy. DA Davidson upgraded JPMorgan Chase (NYSE:JPM) & Co., but shares nonetheless fell 2.2%. 

Investors will be watching bank earnings for signs that the business shutdowns and massive job losses because of Covid-19 have begun to erode credit quality, which could leave banks holding a rising number of bad loans. 


Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes


Download the App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors. is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.