The second half of 2020 is here, and now it's up to the economy to prove that the stock market was right about a sharp comeback in growth.
The second half will be a 'show me' time for the market, which has been moving higher on the expectation of a V-shaped recovery after the coronavirus shutdowns.
The first big test will be the June jobs report, out on Thursday instead of its usual Friday release due to the July 4 holiday. According to Refinitiv, economists expect 3 million jobs were created, after May's surprise gain of 2.5 million payrolls beat forecasts by a whopping 10 million jobs. "I think the stock market is looking beyond the valley. It is expecting a V-shaped economic recovery and a solid 2021 earnings picture," said Sam Stovall, chief investment strategist at CFRA. He expects large-cap company earnings to be up 30% next year, and small-cap profits to bounce back by 140%.
Even without actual economic shutdowns, the virus could slow activity. "That doesn't mean businesses won't shut themselves down, or consumers won't back down more," she said.In the second half of the year, the market should turn its attention to the election, but Sonders does not expect much reaction to it until after Labor Day.shows Democrat Joe Biden leading President Donald Trump by 10 percentage points, and the odds of a Democratic sweep have been rising.
Those were 1960 when John Kennedy took office, 1968, when Richard Nixon won; 1980 when Ronald Reagan's was elected to his first term; and 1992, the first win by Bill Clinton. Coincidentally, in all of those years, the opposing party gained control of the White House.The stocks market's strong second-quarter showing came after the Fed and Congress moved quickly to inject the economy with trillions in stimulus.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
New credit card benefits during quarantine — updated for June 2020 - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »
Reuters to host virtual Newsmaker with International Monetary Fund MD Kristalina Georgieva on Friday, June 26On Friday, Reuters will host a virtual Newsmaker event featuring Managing Director of International Monetary Fund, Kristalina Georgieva. Join Reuters for a discussion with Georgieva on how the pandemic is reshaping expectations for global economic growth, financial stability, debt relief, social unrest and more.
Read more »
Lessons from South Korea: Dr. Sanjay Gupta's coronavirus podcast for June 24South Korea has been widely praised as a Covid-19 success story. How did they do it? CNN Chief Medical Correspondent Dr. Sanjay Gupta talks to CNN reporter Paula Hancocks in Seoul about how South Korea has learned to live with the virus.
Read more »
Mama June Struggles to Admit She's a Drug Addict (Exclusive)Mama June has an in-depth personal discussion about her addiction on 'Family Crisis.'
Read more »