Rover's Weekly Market Brief - 7/2/2020

Indices

DJIA: 25,827.40 (+3.25%)

NASDAQ: 10,208.00 (+4.62%)

S&P 500: 3,130.01 (+4.02%)

Commodities

Gold: 1,787.90 (+0.43%)

Copper: 274.20 (+3.12%)

Crude Oil: 40.27 (+4.62%)

Updated Watchlists in the Investors Library

We have updated a number of interesting Watchlists in the Stock Rover’s Investors Library. Any of these Watchlists can be imported directly into your Stock Rover account. Instructions for importing can be found in our Help Library. The updated watchlists are as follows:

  • Novy-Marx Quality
  • Dogs of the Dow
  • Top 20 S&P 500 Revenue Growers
  • Top 20 S&P 500 Dividend Growers
  • Top S&P 500 Performers Jan-Jun 2020
  • Bottom S&P 500 Performers Jan-Jun 2020
  • The Dow Big 5
  • Fifteen Large REITs
  • The Big 20 of MLP’s
  • Top 25 ETFs by Market Cap
  • Top 25 ETFs by Volume

The Liberated Stock Trader Beat the Market Screener

This week we are pleased to bring you a guest blog post from Barry D. Moore of Liberated Stock Trader, one of our valued Stock Rover partners. The blog post is titled The Liberated Stock Trader Beat the Market Screener. This screener is designed to select stocks that have a significant chance of beating the S&P500 returns. The screener uses growth in free cash flow, and explosive EPS growth along with Joel Greenblatt’s ROC and Earnings Yield formulas. The screener has produced a selection of stocks that has beat the market 5 of the last 7 years.

Economy

The Institute for Supply Management’s Manufacturing Report on Business Purchasing Managers’ Index grew to 52.6%, with manufacturing returning to growth after one month of contraction and the overall economy speeding up growth in its second consecutive month of expansion. Manufacturing growth was faster in some sectors, such as Food, Beverage & Tobacco or Wood Products, while survey respondents from other sectors such as Petroleum or Miscellaneous Manufacturing noted that demand was still low but starting to stabilize. New Orders and Production showed strong increases in June, and inventories and prices began to increase. However, employment and new export orders continued to contract, albeit at a slower rate. The ISM Chair commented that manufacturing in June was entering an expected expansion after three straight months of COVID-19 related disruptions.

In the minutes for June’s FOMC meeting, the expected path for the prime rate was estimated to remain at or close to the current 0.0% – 0.25% rate until late 2023, although a couple of members had cautioned that long term low interest rates could “pose significant risks to financial stability”. The Committee estimated that Q2 GDP would have an historically large decline, and noted that while there were encouraging signs of recovery beginning for employment, new job gains were much less than job losses. The economic outlook was for improvement throughout the rest of the year as COVID-19 related restrictions were rolled back, but noted that a second wave of business closings and social limitations would lower GDP, employment and inflation below current projections, with some scenarios predicting a protracted wave of reduced economic activity.

Employment rose by 4.8 million in June, dropping the unemployment rate by 2.2% to 11.1% as economic activity began to resume after COVID-19 restrictions were eased. As with previous reports for March, April, and May, a misclassification of laid off workers is likely to have artificially lowered the unemployment rate, but in June the effect was estimated at a much lower 1% error. Total nonfarm employment in June was 14.7 million, down -9.6% from before job losses began in February. Significant numbers of jobs were created in areas including leisure and hospitality (+2.1 million), retail (+740,000), education and health services (+568,000), and manufacturing (+356,000). Average hourly earnings dropped by -$0.35 to $29.37, but this was primarily due to large job gains for lower paid workers. The U-6 unemployment rate, which includes part time and marginally attached workers, dropped from 21.2% to 18.0%, compared to 7.0% in February.

Upcoming Economic Reports:

Tuesday July 7 – Job Openings and Labor Turnover Survey (JOLTS)

Friday July 10 – Producer Price Index

Earnings Calendar:

 

Monday Tuesday Wednesday Thursday Friday
Shiloh
Industries
(SHLO)
Paychex
(PAYX)
MSC Industrial
Direct Co
(MSM)
Walgreens
Boots Alliance
(WBA)
Hingham
Institution
(HIFS)
Mercurity FinTech
Holding
(MFH)
Levi
Strauss
(LEVI)
Bed Bath
& Beyond
(BBBY)
Delta
Air Lines
(DAL)
Rocky Mountain
Chocolate
(RMCF)



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