We've reported for weeks that the trading activity among corporate insiders in general, but on the tech-heavy Nasdaq in particular, was clearly suggesting that stocks likely had come too far, too fast. Further, insider-sentiment data from Vickers Stock Research left the clear impression that stocks were priced for perfection and vulnerable to events like inflation disappointment, geopolitical turmoil, or less-than-expected corporate earnings. Now, a mix of all those things seem to be in play and stocks are indeed experiencing rough sledding for the first time since about October. Reflecting the forecasting from Vickers, as of this writing the Nasdaq Composite and Nasdaq 100 have slid about 7% from the March 22 highs while the S&P 500 is off about 5%.

Value stocks -- a market segment that includes high-yield stocks -- outperformed growth stocks in 2022. That's a recent rarity, as for the past decade-plus, the performance record has favored growth. But the tide turned in 2022. The rollout of COVID-19 vaccines gave a lift to some of the cyclical companies (energy and regional banks) that had lagged in recent quarters, and value stocks outpaced growth stocks that year. While growth stocks have retaken the lead since 2023, the Federal Reserve continues to keep interest rates high to fend off inflation. This could possibly cap multiple expansion for growth companies in coming quarters. In any event, the value sector is the place to achieve income.

How High Is Up?

Rapidly rising inflation in 2022 knocked stocks into a bear market. While growth strategies suffered the most, value strategies also declined. Even bond prices were lower last year. Stocks have recovered thus far in 2023, but gains have been largely driven by only a handful of high-tech companies. Inflation remains high and the Fed continues to raise rates. Is a recession in the offing? With all the uncertainty, is it time for investors to cash in their chips? We note that investors exit the stock market at their own peril, as long-term returns from equities consistently have outpaced long-term returns from other asset classes, such as fixed income and cash. Argus believes that Min Vol is an all-weather strategy that is timely in any investing climate. Academic literature and, more to the point, returns history, indicate that Min Vol can deliver market-matching returns on an absolute basis and superior returns on a risk-adjusted basis over various time periods.

In this edition, a look at specialty contractors; renewable energy growth still outpacing expectations; digital ads and ad-tech stocks rebound; and Okta, Arm Holdings, and Regions Financial.

Stocks continued to slide on Thursday morning, extending Wednesday's losses ahead of a midday speech from Fed Chair Jerome Powell. Investors weighed a strong 3Q report from Netflix, which reported solid growth in paid subscribers, revenue, and EPS; and an earnings miss from Tesla, along with a range of warnings from CEO Elon Musk. Weekly employment data pointed to a still tight labor market. First-time claims for state unemployment benefits fell by 13,000 to a seasonally adjusted 198,000 for the week ended October 14, the lowest level since January and below the Reuters consensus of 212,000. The Dow fell 0.4%, the S&P fell 0.3%, and the Nasdaq was flat. Crude oil fell to $88 per barrel, while gold traded near $1964 per ounce.

Value stocks -- a market segment that includes high-yield stocks -- outperformed growth stocks in 2022 for the first time since 2016. Indeed, for the past decade, the performance record has favored growth. But the tide turned in 2022. The rollout of COVID-19 vaccines gave a lift to some of the cyclical companies (energy companies and regional banks) that had lagged in recent quarters, and value stocks outpaced growth stocks over the past year. Meanwhile, the Federal Reserve continues to lift interest rates to fend off inflation, which could possibly cap multiple expansion for growth companies for a few more quarters. Regardless, the value sector is the place to achieve income. The current yield on the iShares Russell 1000 Value Index ETF is 2.2%, compared to the 0.9% current yield on the iShares Russell 1000 Growth Index ETF. For our High-Yield Theme Model Portfolio, we are seeking stocks with yields of at least 3.0%. This moves us deep into the value segment of the market.

Value stocks -- a market segment that includes high-yield stocks -- outperformed growth stocks in 2022 for the first time since 2016. Indeed, for the past decade, the performance record has favored growth. But the tide turned in 2022. The rollout of COVID-19 vaccines gave a lift to some of the cyclical companies (energy companies and regional banks) that had lagged in recent quarters, and value stocks outpaced growth stocks over the past year. Meanwhile, the Federal Reserve continues to lift interest rates to fend off inflation, which could possibly cap multiple expansion for growth companies for a few more quarters. Regardless, the value sector is the place to achieve income. The current yield on the iShares Russell 1000 Value Index ETF is 2.2%, compared to the 0.9% current yield on the iShares Russell 1000 Growth Index ETF. For our High-Yield Theme Model Portfolio, we are seeking stocks with yields of at least 3.0%. This moves us deep into the value segment of the market.

Rapidly rising inflation in 2022 knocked stocks into a bear market. While growth strategies suffered the most, value strategies also declined. Even bond prices were lower last year. Stocks have recovered thus far in 2023, but gains have been largely driven by only a handful of high-tech companies. Inflation remains high and the Fed continues to raise rates. Is a recession in the offing? With all the uncertainty, is it time for investors to cash in their chips? We note that investors exit the stock market at their own peril, as long-term returns from equities consistently have outpaced long-term returns from other asset classes, such as fixed income and cash. Argus believes that Min Vol is an all-weather strategy that is timely in any investing climate. Academic literature and, more to the point, returns history, indicate that Min Vol can deliver market-matching returns on an absolute basis and superior returns on a risk-adjusted basis over various time periods.

Monday Tee Up: Another Fed Hike?

While the major indices had another solid day on Monday (again led by the 2023 standouts), the average stock underperformed and the broad-based NYSE and the small-caps barely participated. The S&P 500 tacked on another 0.9%, the Nasdaq ripped higher by 1.5%, and the Nasdaq 100 surged by 1.8%. The NYSE rose 0.3%, the Russell 2000 was up 0.4%, the S&P 600 SmallCap rose 0.2%, and the S&P MidCap 400 gained 0.6%. It was a typical trading day for 2023.

The Vickers Top Buyers & Sellers is a daily report that identifies the five companies the largest insider purchase transactions based on the dollar value of the transactions as well as the five companies the largest insider sales transactions based on the dollar value of the transactions.

We read two statements over the weekend that say it all. First up was this. "Positive earnings surprises of this magnitude are rarely seen when you enter a recession." That compared to this. "Forecasted probability of recession at levels only seen during recessions." Yes, these are confusing times.

The Portfolio Selector features the Argus Focus List, a group of 30 "best idea" stocks generated and regularly updated by Argus' analysts and investment policy committee. It also includes the director of research’s monthly investment strategy column, stock recommendations and sector picks, economic forecasts, and an asset allocation model. This month, the Focus List additions are Alcon Inc. (ALC); Ulta Beauty Inc (ULTA); Comcast Corp (CMCSA); ProLogis (PLD) and the Focus List deletions are AstraZeneca PLC (AZN); Omnicom Group, Inc. (OMC); Target Corp (TGT); Equinix Inc (EQIX).

The Vickers Top Buyers & Sellers is a daily report that identifies the five companies the largest insider purchase transactions based on the dollar value of the transactions as well as the five companies the largest insider sales transactions based on the dollar value of the transactions.

U.S. Equities were down on Thursday morning. Existing home sales fell 2.4% in March to a seasonally adjusted annual rate of 4.44 million. The median existing-home sales price fell 0.9% year-over-year to $375,700. The Labor Department reported that first-time jobless claims rose to 245,000 from 240,000 last week. On the earnings front, Tesla stock fell after the company cut prices. The Dow fell 0.2%, the S&P slipped 0.5%, and the Nasdaq was down 0.6%. Crude oil traded near $77 per barrel while gold rose $8 to $2015 per ounce.

The first-quarter EPS season is here, with some of the major financials starting to report Thursday night. In addition to that excitement, we have a couple of Federal Reserve presidents speaking on Tuesday; March CPI on Wednesday; a few more Fed speakers and March PPI on Thursday; and March Retail Sales on Friday. Remember one thing: the most-important market tell is the reaction to earnings, economic data, and Fed speakers -- not the actual numbers or the conversation.

Small- and mid-cap stocks (SMID) have underperformed large-caps over the past 12 months, but may be in a better position to generate market-beating returns going forward. SMID companies tend to focus on domestic markets, so their businesses could be less disrupted by the fallout from the Russian invasion of Ukraine, high European inflation or other geopolitical developments. As well, the prices of SMID stocks generally are lower than the prices of large-caps. SMID stocks can be risky, but diversified investors look to have exposure to small- and mid-caps based on the long-term performance record. We estimate that 12%-15% of the U.S. stock market's capitalization is comprised of SMID stocks. For our purposes, we use a threshold of $15 billion to define a SMID stock.

It is not hard to figure out what is keeping the S&P 500 (SPX) above water in 2023 -- and that is the largest stocks in the index. For the year, the index has managed a 3% gain thanks to its heavy market-cap construction. Apple represents almost 7% of the SPX, while MSFT is 6%, Alphabet (GOOGL/GOOG) is 3.2%, AMZN is 2.5%, NVIDIA is 1.8%, BRK.B is 1.7%, TSLA is 1.5%, and META is 1.3%.

Value stocks -- a market segment that includes high-yield stocks -- outperformed growth stocks in 2022 for the first time since 2016. Indeed, for the past decade, the performance record has favored growth. But the tide turned in 2022. The rollout of COVID-19 vaccines gave a lift to some of the cyclical companies (energy companies and regional banks) that had lagged in recent quarters, and value stocks outpaced growth stocks over the past year. Meanwhile, the Federal Reserve continues to lift interest rates to fend off inflation, which could possibly cap multiple expansion for growth companies for a few more quarters. Regardless, the value sector is the place to achieve income. The current yield on the iShares Russell 1000 Value Index ETF is 2.2%, compared to the 0.9% current yield on the iShares Russell 1000 Growth Index ETF. For our High-Yield Theme Model Portfolio, we are seeking stocks with yields of at least 3.0%. This moves us deep into the value segment of the market.

Stocks fell sharply on Thursday as investors weighed new inflation, employment, and housing market data. Producer prices rose more than expected, raising concerns about continued aggressive rate hikes, while weak housing starts and building permits showed the impact of high mortgage rates. Meanwhile, weekly unemployment claims pointed to a still strong labor market. The Labor Department said that first-time claims for state unemployment benefits fell by 1,000 to 194,000 for the week ended February 11, below the Reuters consensus forecast of 200,000. The Dow fell 1.26%, the S&P 1.38%, and the Nasdaq 1.78%. Crude oil traded near $78 per barrel, while gold rose $3 to $1848 per ounce.

As expected, the FOMC raised the fed funds rate by 25 basis points (bps), moving the funds target range to 4.5% to 4.75%. The Fed is still guiding for a terminal rate of at least 5.00% to 5.25%. But in his commentary, Chairman Powell changed one sentence from prior statements, becoming a bit more dovish than in the recent past. Yes, the Fed's release is gone over with a fine-tooth comb and any changes to the wording at this point are given great importance.

Rapidly rising inflation 2022 knocked stocks into a bear market. While growth strategies suffered the most, value strategies also declined. Even bond prices were lower last year. Volatility, which has dropped from the highs of 2020, still has not returned to pre-COVID levels. Is it time for investors to cash in their chips? We note that investors exit the stock market at their own peril, as long-term returns from equities consistently have outpaced long-term returns from other asset classes, such as fixed income and cash. As well, those fixed-income returns are from eras when the 10-year Treasury bond yield was much higher than the current 3.5% level. So what's a potential equity strategy for investors amid all the uncertainty? Argus believes that Min Vol is an all-weather strategy that is timely in any investing climate.

West Texas Intermediate (WTI) was trading at $73.70/barrel Thursday afternoon, after sinking to $70 in the first half of December. Crude has bounced off the key 61.8% retracement of the rally from the November 2020 lows. WTI remains in a bearish channel off the peak since mid-June and would need to break above $83 to break the downtrend. The 14-week relative strength index traced out a bullish divergence at the early December low, but momentum remains in a downtrend.

Sometimes, you just shake your head and don't ask questions! For many individual investors, the current stock market just doesn't make sense, especially based on the news. But after Tuesday, even many professional investors are scratching their heads.

Crude oil (WTI) had quite a day on Monday, falling all the way to $75.27 early on -- which was a bit lower than the level hit in late September. But oil then stormed back, closing near $80 and setting up a very interesting potential double bottom -- and maybe even the end of the correction that has been in play since June (when crude was up at $123). Yes, we are a bit over our skis in suggesting an end to the correction. But it's possible that oil is tracing out a large cup pattern.

Stocks finished lower on Thursday after giving up early gains, as investors weighed mixed earnings reports along with new employment and housing market data. First-time claims for state unemployment benefits fell by 12,000 to 214,000 for the week ended October 15, below the Bloomberg consensus forecast of 230,000. Continuing claims rose by 21,000 to 1.385 million. On the housing front, existing home sales fell 1.5% in September to an annualized 4.71 million units, slightly above the consensus estimate. The Dow fell 0.30%, the S&P 0.80%, and the Nasdaq 0.61%. Crude oil rose to $86 per barrel, while gold fell slightly to $1633 per ounce.

Small- and mid-cap stocks (SMID stocks) have underperformed large-caps over the past 12 months, but still may be in a better position to generate market-beating returns going forward. For one thing, SMID companies tend to focus on domestic markets, so their businesses could be less disrupted by the fallout from the Russian invasion of Ukraine. As well, the prices of SMID stocks generally are lower than the prices of large-caps. SMID stocks can be risky -- and large-caps outperformed SMID stocks in 11 of the 19 years in our test period. Still, despite the risks, diversified investors look to have exposure to small- and mid-caps based on the long-term performance record. We estimate that 12%-15% of the U.S. stock market's capitalization is comprised of SMID stocks. For our purposes, we use a threshold of $20 billion to define a SMID stock.

Small- and mid-cap stocks (SMID stocks) performed poorly last week, as the Russell 2000 (ETF is IWM) declined 6% and is close to its year-to-date lows. Thus far in 2022, the index is down 25.2%, slightly worse than the S&P 500 ETF SPY, which is off 22.5%. But looking ahead, SMID stocks may be in a better position than large-caps to regain lost ground. For one thing, SMID companies tend to focus on domestic markets, so their businesses could be less disrupted by the fallout from the Russian invasion of Ukraine. For another, the prices of SMID stocks generally are lower than the prices of large-caps, as the P/E ratio on the Russell 2000 Small-Cap Index is 16 compared to a P/E of 27 for the S&P 500. Finally, the long-term record has favored SMID stocks over large-caps. From 2003-2021, the Russell 2000 had climbed 511%, compared to an advance of 450% for the S&P 500. Here are a handful stocks with market caps below $20 billion that are on the Argus BUY list.

Value stocks -- a market segment that includes high-yield stocks -- are outperforming growth stocks in 2022 for the first time since 2016. Indeed, for the past decade, the performance record has favored growth. In nine of the past 10 years, growth stocks have topped value stocks. But the tide may be turning. The rollout of COVID-19 vaccines has given a lift to some of the cyclical companies (energy companies and regional banks) that have lagged in recent quarters, and value stocks have kept up the pace with growth stocks in the past year. Now, the Federal Reserve lifting interest rates to fend off inflation, which will likely cap multiple expansion for growth companies. Regardless, the value sector is the place to achieve income. The current yield on the iShares Russell 1000 Value Index ETF is 2.1%, compared to the 0.8% current yield on the iShares Russell 1000 Growth Index ETF. For our High-Yield Theme Model Portfolio, we are seeking stocks with yields of at least 3.0%. This moves us deep into the value segment of the market.

Based on our review of the latest economic fundamentals, our forecast for GDP growth in 2022 is now 0.7%, down from our prior forecast of 1.4%. Our preliminary forecast for 2023 is now 1.8%, down from 1.9%, assuming economic trends start to recover later next year. Our forecasts do not call for a recession, despite the negative 1H22 results. But they do call for below-trend GDP growth due largely to the impact on the economy of higher interest rates. The domestic employment environment is nearing full strength, although consumer confidence trends are mixed. Auto sales have recovered from pandemic lows, but at an uneven pace. The U.S. housing market has been a positive contributer to the economic recovery from the pandemic, but high prices are cooling the market. Businesses are expanding, but growth is slowing. Exports are under pressure from geopolitical tensions and the rising dollar. But import growth will not proceed at the recent high teens pace. And government spending trends should smooth out as well. Our estimates differ a bit from consensus. The Federal Reserve is anticipating GDP growth of 1.7% for 2022, while the IMF is calling for growth of 2.3%. The Philadelphia Federal Reserve's Survey of Professional Forecasters is calling for growth of 2.5%. The GDPNow forecast from the Federal Reserve Bank of Atlanta is 1.3% for 3Q22.

Stocks rose strongly on Wednesday morning as investors weighed earnings reports from AMD, Starbucks, and CVS along with new U.S. service sector data. The Institute for Supply Management said that its nonmanufacturing index rose to 56.7 in July, up from 55.3 in June and above the Reuters consensus forecast of 53.5. The reading marked the first increase after three straight monthly declines. The Dow rose 0.9%, the S&P 0.9%, and the Nasdaq 1.8%. Crude oil fell 2% to $92 per barrel, while gold fell $19 to $1771 per ounce.

Rapidly rising inflation in 2022 has knocked the stock market into a bear market. While growth strategies have suffered the most, value strategies also have declined. Even year-to-date bond prices are lower. Volatility, which has dropped from the highs of 2020, still has not returned to pre-COVID levels. Is it time for investors to cash in their chips? We note that investors exit the stock market at their own peril, as long-term returns from equities consistently have outpaced long-term returns from other asset classes, such as fixed income and cash. As well, those returns are from eras when the 10-year Treasury bond yield was much higher than the current 3.0% level. So what's a potential equity strategy for investors amid all the uncertainty? Argus believes that Min Vol is an all-weather strategy that is timely in any investing climate. Academic literature and, more to the point, returns history, indicate that Min Vol can deliver market-matching returns on an absolute basis and superior returns on a risk-adjusted basis over various time periods.

Rapidly rising inflation in 2022 has knocked the stock market into a bear market. While growth strategies have suffered the most, value strategies also have declined. Even bond prices are lower year-to-date. Volatility, which has dropped from the highs of 2020, still has not returned to pre-COVID levels. Is it time for investors to cash in their chips? Perhaps not yet. We note that investors exit the stock market at their own peril, as long-term returns from equities consistently have outpaced long-term returns from other asset classes, such as fixed income and cash. As well, those returns are from eras when the 10-year Treasury bond yield was much higher than the current 3.0% level. So what's a potential equity strategy for investors amid all the uncertainty? Argus believes that Min-Vol is an all-weather strategy that is timely in any investing climate. Academic literature and, more to the point, returns history indicate that Min-Vol can deliver market-matching returns on an absolute basis and superior returns on a risk-adjusted basis over various time periods. We have designed a portfolio of companies followed by Argus Research analysts that are BUY-rated and have impressive Min-Vol characteristics of low beta, high yield, high market cap, strong balance sheets, and low risk profiles. Some of the stocks featured in the portfolio are listed below.

Stocks fell sharply on Friday morning, a day after Fed Chair Jerome Powell said that a 50-basis-point rate hike would be 'on the table' in May. The comments contributed to a sharp afternoon selloff on Thursday. On the earnings front, American Express shares fell despite stronger-than-expected 1Q earnings, as the company did not raise its full-year guidance. Verizon shares also fell after the company said that 2022 earnings would come in toward the low end of its previous guidance range. The Dow fell 1.4%, the S&P 1.2%, and the Nasdaq 0.8%. Crude oil fell to $102 per barrel, while gold traded near $1929 per ounce.

The U.S. housing market has been an important contributor to the economic recovery from the pandemic. While high prices have cooled the market a bit, but many metrics remain positive. Indeed, the National Association of Realtors recently reported that existing home sales in February 2022 totaled 6.0 million at a seasonally adjusted annual rate --down 7% month-over-month. The Commerce Department reported that new one-family homes were selling at a 772,000/year rate in February -- down from 860,000 in December 2021. Meanwhile, a leading indicator for the industry, housing permits, is sending a positive signal. According to the Census Bureau, permits were authorized in February at a 1.9 million rate, a pandemic-period high. Housing prices remain hot. The S&P/Case-Shiller National Home Price Index for January 2022 showed that prices gained 19% year-over-year. The high prices have boosted housing inventories. According to the U.S. Census Bureau, there is a 6.3-month supply of existing homes for sale (versus the average range of 4.5-7.5 months). Until pricing pressures start to ease, we look for modest growth (at best) in the housing sector.

Argus has published its latest Portfolio Selector, which features its popular Focus List. Each month, Director of Research Jim Kelleher, CFA, surveys the team of Argus Research industry analysts for their timeliest recommendations out of the company's fundamental universe of approximately 500 stocks. The Focus List typically includes 30 stocks: turnover is high, as Director of Research Kelleher typically adds three or four new stocks per month. Below are the latest additions, all of which are rated BUY at Argus Research.

The Portfolio Selector features the Argus Focus List, a group of 30 "best idea" stocks generated and regularly updated by Argus' analysts and investment policy committee. It also includes the director of research’s monthly investment strategy column, stock recommendations and sector picks, economic forecasts, and an asset allocation model. This month, the Focus List additions are Marriott International, Inc. (MAR); General Dynamics Corp. (GD); Sempra Energy (SRE); Omnicom Group, Inc. (OMC) and the Focus List deletions are American Electric Power Co Inc (AEP); Vontier Corp (VNT); Twilio Inc (TWLO); Hilton Worldwide Holdings Inc (HLT).

Small- and mid-cap stocks (SMID stocks) have underperformed large-caps over the past 12 months, but still may be in a better position to generate market-beating returns going forward. SMID companies tend to focus on domestic markets, so their businesses could be less disrupted by the fallout from the Russian invasion of Ukraine. As well, the prices of SMID stocks generally are lower than the prices of large-caps. That said, SMID stocks can be risky and large-caps outperformed SMID stocks in 11 of the 19 years in our test period. Still, despite the risks, diversified investors look to have exposure to small- and mid-caps based on the long-term performance record. We estimate that 12%-15% of the U.S. stock market's capitalization is comprised of SMID stocks. For our purposes, we use a threshold of $20 billion to define a SMID stock.

Small- and mid-cap stocks (SMID stocks) have underperformed large-caps over the past 12 months, but still may be in a better position to generate market-beating returns going forward. For one thing, SMID companies tend to focus on domestic markets, so their businesses could be less disrupted by the fallout from the Russian invasion of Ukraine. For another, the prices of SMID stocks generally are lower than the prices of large-caps, as the P/E ratio on the Russell 2000 Small-Cap Index is 16x compared to a P/E of 27x for the S&P 500. Finally, the long-term record has favored SMID stocks over large-caps. From 2003-2021, the Russell 2000 Index had climbed 544%, compared to an advance of 401% for the S&P 500 index. Here are a handful stocks with market caps below $20 billion that are on the Argus BUY list.

Stocks rose strongly for a second day on Thursday as investors continued to assess the Fed's rate hike plans. Home construction and employment data were better than expected. Residential housing starts rose 6.8% in February to an annualized 1.77 million. First-time claims for state unemployment benefits fell by 15,000 to 214,000 for the week ended March 12, below the Bloomberg consensus forecast of 220,000. The Dow rose 1.23%, the S&P 1.23%, and the Nasdaq 1.33%. Crude oil traded near $104 per barrel, while gold rose $33 to $1943 per ounce.

The stock market moved sideways last week before a sharp selloff on Friday put stocks firmly in the red. Blue chips relatively outperformed tech stocks,

Stocks were mixed on Wednesday morning as investors weighed earnings reports from Alphabet, Apple, and Microsoft, and awaited the Fed's policy statement and comments from Fed Chair Jerome Powell this afternoon. Investors will be closely scrutinizing Mr. Powell's comments regarding the state of the economy, the impact of the Delta variant, and the timing of any reduction in the central bank's bond buying program. The Dow fell 0.1%, the S&P rose 0.1%, and the Nasdaq rose 0.7%. Crude oil traded near $72 per barrel, while gold fell $3 to $1797 per ounce.

Stocks rose on Friday morning amid strong manufacturing and housing market data. The rally followed a Thursday afternoon selloff prompted by the Biden administration's plan for increased capital gains taxes on high earners with incomes above $1 million. IHS Markit said that its manufacturing purchasing managers' index rose to 60.6 in the first half of April, up from a final reading of 59.1 in March and slightly above the consensus forecast. On the housing front, the Commerce Department said that U.S. new home sales rose 20.7% to an annualized 1.021 million units in March, above the consensus of 886,000. The Dow rose 0.5%, the S&P 0.9%, and the Nasdaq 1.3%. Crude oil traded near $62 per barrel, while gold fell $6 to $1776 per ounce.

The nation has been transfixed by the deep freeze across most of the country, the power and water woes in Texas, and the prospects for more storms ahead. Quietly and seemingly in the background, the stock market is showing signs of calming.

Final Thoughts on Market Tendencies around the Election

COVID-19 Surge Moderately Impacting Economic Recovery

COVID-19 Surge Moderately Impacting Economic Recovery

Stocks were mixed on Wednesday morning as investors weighed the lifting of stay-at-home restrictions in multiple states along with earnings reports from Disney and GM. Employment data was grim. Payroll provider ADP said that U.S. private employers laid off a record 20.236 million workers last month, greater than the Reuters consensus forecast of 20.05 million. The Dow fell 0.1%, the S&P was flat, and the Nasdaq rose 1.0%. Crude oil fell more than 4% to $23.50 per barrel, while gold fell $21 to $1690 per ounce.