23 July 20

1) The business community of America is facing a national coin shortage, making it even more difficult for the retail sector to function. Across the country, restaurants, grocery stores, and retail outlets are posting signs near their cash registers and drive thru windows asking people to pay with credit cards or exact change. This shortage is a result of the spreading coronavirus closing businesses that crippled economic activity in the U.S., so the circulation of coins dropped off significantly. Furthermore, the U.S. Mint who manufactures the nation’s coinage supply, has decreased staffing because of the pandemic, thus reducing the availability of coins.

2) New research has directly connected the explosive growth of passive investing to deteriorating corporate performance over the long haul. Companies with higher passive ownership spent more on stock repurchases, but saw worse financial outcomes. Passive investment can allow opportunistic management behavior with negative effects of future company performance. Companies with high passive ownership are less monitored, therefore allowing management to act unhindered in their own best interest. Passive ownership is a result of investing by mutual and ETF funds who track indexes instead of actively manage counterparts.

3) The government has placed orders for up to 600 million doses of Covid vaccine to Pfizer and BioNTech. The U.S. health officials have agreed to pay $1.95 billion dollars for 100 million doses of a vaccine. Nations around the world have begun ordering vaccines that are still being tested in an effort to halt the spread of the virus. To date, the coronavirus has killed 600,000 people around the world. It is planned the vaccine will be free to U.S. citizens.

4) Stock market closings for – 22 JUL 20:

Dow 27,005.84 up 165.44
Nasdaq 10,706.13 up 25.76
S&P 500 3,276.02 up 18.72

10 Year Yield: down at 0.60%

Oil: up at $41.90


By: Economic & Finance Report

In early months of 2018, the blossoming of a new calendar year,  US President Donald Trump will be able to pick a new US Federal Reserve Chairperson. The current Federal Reserve Chairwoman Janet Yellen’s term will be up in February 2018. Having led the Fed since Feb 2014, Ms. Yellen is the first woman to be head of 103 year old monetary policy system.

The Federal Reserve was instrumental in getting the US out of recession and  the 2008 financial meltdown. Various indexes have gained tremendously under the current leadership of the Fed. The S&P 500 index is currently up 45%. Stock market indexes have correlated with Fed policies for years, sometimes directly sometimes indirectly.  The new Fed chair will most likely have a direct impact on the stock markets and indexes. -SB



nasdaq pic

By: Economic & Finance Report

The Nasdaq Composite fell the most in the 11 months that it has be adhered to. Tech stocks were the driving force behind the Nasdaq falling so violently. The better known tech and bio tech stocks were the stocks that fell so abruptly.

Momentum stocks took the heat which indicated other uptrending stocks were going to follow suit. Many investors also pulled their positions and money when they witnessed stock indexes reclining  and pulling back around certain support levels.  -SB