Though the markets were somewhat directionless this week, potential fiscal stimulus was a key driver of investor sentiment. On Monday, the Senate released details on a new $1 trillion legislation package titled the Health Economic Assistance, Liability Protection & Schools (HEALS) Act. The bill consists of another round of $1,200 direct payments for those who qualify, expanded unemployment benefits (albeit at a lower level), more paycheck protection for small businesses, continued student loan deferment, and funding for schools and universities. As robust as $1 trillion may sound, the fight in Congress is over whether it is enough.
On the COVID-19 front, the news remains mixed. From a positive perspective, there are increasing signs that some of the harder-hit states in the South and West may be plateauing. The number of new cases in these areas is slowing as public health measures such as mandated mask wearing and business closures appear to be paying off. Conversely, China saw its first new case in three weeks.
While a plateauing number of new cases is good news in the U.S., the continuing tug of war between public safety and economic growth remains in full effect. It was announced on Tuesday that consumer confidence fell more than expected in July as business reopenings were rolled back nationwide. Confidence further waned on renewed job and income concerns. The number of individuals claiming unemployment benefits also ticked up for the first time since the heart of the COVID-19 storm in March, further dampening consumers’ spirits.
In the midst of all this, the CEOs of four of the world’s largest technology companies headed to Washington to testify in front of Congress. In a rather unlikely alliance, the top executives at Amazon, Apple, Facebook, and Google testified alongside one another in an effort to make the case that they are not deploying anticompetitive behaviors, and that they provide benefits to American consumers and businesses. These four companies are dominant to be sure – and they are not without flaws – but they have also connected individuals in ways that had never been done before. The hearing felt a bit surreal alongside of the health and economic woes seen this year – but I suppose that’s on par for 2020.
Stay safe and be well.
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