Market Data as of Week Ending 07/24/2020 unless noted otherwise.
U.S. stock prices were mixed last week as investor sentiment shifted following employment data and increasing coronavirus cases. Company size was negligible, while value stocks returned to the forefront and outperformed their growth counterparts. Economic sector performance was mixed with declines in healthcare, communication services, and technology that were partially offset by gains in energy, consumer discretionary, and financials. Developed foreign stocks in Europe and Asia outperformed U.S stocks while Emerging Market stocks outperformed both domestic and developed foreign markets.
U.S. Treasury yields declined again this past week. High yield corporate bonds were the best performing asset class, followed by investment grade corporate bonds. Despite the increased demand, investment grade corporate bonds are yielding approximately 2% and high yield corporate bonds are yielding more than 5.5%.
For the first time since March, initial unemployment claims rose from the previous week (1.31 million to 1.41 million). Meanwhile, the additional unemployment payment under the CARES Act is set to expire at the end of the month, unless Congress and the Administration negotiate either an extension or changes to the program. In Europe, the historic €750 billion stimulus plan gives the EU’s executive branch the ability to raise capital denominated in euros on behalf of all 27 states.