Episode 05: First day in May
It was a turbulent week in the markets with gains and losses all week. The week was full of news from the FED - announcing that it will continue to support the economy by keeping interest rates low, slowing down but continuing to buy up treasuries and bonds and also supporting the credit markets to make sure there are financial products available.
Key companies in the tech sector reported earning this week with mixed results. Facebook announced that although their advertising sales were down, their revenue remained stable, which led to a 10% gain following their first quarter results. Amazon, on the other hand, told investors to take a seat as they missed on earnings and use $4B to support Covid related expenses. Finally Apple surprised investors as many expected significant losses based on their overseas exposure but they ended up beating earnings expectations.
Kicking off the market today we ended the week down.
DOW -622.03 pts off 2.55%
S&P-81.72 pts off 2.81%
Nasdaq -284.60 pts off 3.20%
The results consist of a few elements that continue to be a tug of war between the markets and main street. On main street we are now at over 30 million in unemployment claims and yesterday J Crew announced that it is preparing to file for bankruptcy, while California and other states continue their shutdown through May. On Wall Street the Fed, as mentioned, continues to support the economy and give investors confidence to get through these next couple of quarters. While some states stay closed others are looking forward to getting back to the new normal with the hope that this will drive a recovery.
En Espanol
Los resultados consisten en algunos elementos que continúan siendo un tira y afloja entre los mercados y la calle principal. En la calle principal, ahora tenemos más de 30 millones de solicitudes de desempleo y ayer
J Crew anunció que se está preparando para declararse en bancarrota, mientras que California y otros estados continúan su cierre hasta mayo. En Wall Street, la Fed, como se mencionó, continúa apoyando la economía y brindando a los inversionistas confianza para superar estos próximos trimestres. Mientras que algunos estados permanecen cerrados, otros esperan volver a la nueva normalidad con la esperanza de que esto impulse una recuperación.
Gracias por sintonizar y que tengan un gran fin de semana.