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Mid-Week Market Minute 07.29.20

News |

All eyes were on the Federal Reserve this week following the conclusion of its two-day meeting on Wednesday. As anticipated, the Federal Open Market Committee (FOMC) held the funds rate target range steady at 0-0.25% while maintaining its forward guidance for monetary policy. In addition, the Fed reiterated their commitment to using all tools necessary to support the economy including the continuation of asset purchases at, or above the current clip. On the data front, durable goods orders came in stronger than expected for June, rising 7.3% vs. forecasts for a 6.5% increase. On Thursday, investors will be laser focused on the first estimate of second quarter gross domestic product (GDP) where the Federal Reserve Bank of Atlanta expects the change in GDP from quarter one to quarter two to fall by -34% on an annualized basis. From a fiscal policy standpoint, markets are anticipating another round of stimulus from Congress with a price tag north of $1 trillion, including another round of $1,200 checks for consumers. Market behemoths Facebook, Apple, and Amazon each report earnings between now and the end of the week. Blowout quarters from these biggest pandemic winners could go along way in sustaining the recent rally. Interest rates moved lower this week, with the yield on the 2-year and 10-year Treasury notes trading around 0.13% and 0.59% respectively mid-week.

Source: Morningstar, CNBC, Bloomberg, GSAM