Stock market news
The latest stock market news for July 30, 2020.
A lower close for the US stock market today, with the exception of Nasdaq, reversing previous losses and closing with gains of more than 40 points.
Stock market at the close on July 30, 2020
S&P 500: 3,246.22,-12.22(-0.38%)
Dow 30: 26,313.65,-225.92(-0.85%)
Russell 2000: 1,495.10,-5.53(-0.37%)
Stock market volatility
The CBOE Volatility Index (VIX) closed higher at 24.76+0.66 (+2.74%).
US GDP growth and the stock market
“The US economy contracted at the sharpest rate on record in the second quarter this year, affirming fears that the coronavirus pandemic and measures to contain it drove a historic plunge in consumer and business activity.
Here were the main metrics from the Bureau of Economic Analysis’ (BEA) advance Q2 GDP report, compared to consensus estimates compiled by Bloomberg:
Q2 GDP annualized, quarter over quarter: -32.9% vs. -34.5% expected vs. -5.0% in Q1
Q2 Personal consumption: -34.6% vs. -34.5% expected vs. -6.8% in Q1
Core Personal consumption expenditures, quarter over quarter: -1.1% vs. -0.9% expected vs. 1.7% in Q1
Market participants were bracing for an ugly second-quarter print, with the coronavirus pandemic forcing business closures and disrupting daily life for much of the April through June period.
“The decline in second-quarter GDP reflected the response to COVID-19, as ‘stay-at-home’ orders issued in March and April were partially lifted in some areas of the country in May and June, and government pandemic assistance payments were distributed to households and businesses,” The BEA said in its statement. “This led to rapid shifts in activity, as businesses and schools continued remote work and consumers and businesses canceled, restricted, or redirected their spending.”
“The full economic effects of the COVID-19 pandemic cannot be quantified in the GDP estimate for the second quarter of 2020 because the impacts are generally embedded in source data and cannot be separately identified,” it added.
At 32.9%, the second-quarter annualized contraction marked by far the worst plunge ever recorded, based on Bureau of Economic Analysis data spanning back to 1947. Before the pandemic, the worst GDP print on record was in the first quarter of 1958, when GDP fell 10.0% on an annualized basis.
US economic activity contracted by 5.0% in the first quarter of 2020, which captured only the start of the coronavirus pandemic and business shutdowns in March.”
Precipio, Inc. (PRPO) was a stock mover gaining more than 400%, with a stock price at the close of 7.00+5.77 (+469.11%).
Stock Market, U.S. Sectors & Industries Performance
The Energy sector was the worst performing sector -4.10%. The Information Technology sector was the best performing sector +0.53%.