What’s the financial news for this week? The coronavirus news kept getting worse and the stock market kept soaring in a week full of paradoxes. Federal Reserve chairman Jerome Powell and Treasury Secretary Steven Mnuchin testified to Congress that more needs to be done to help the economy while Congress has less than a month before the CARES ACT money runs out. On the medical front, there were several positive developments which lifted investor’s hopes for a virus vaccine.
The number of new coronavirus cases rose sharply around the country, with reports of more than 40,000 cases every day and one day topping 50,000 for the first time. Anthony Fauci, the top infectious diseases expert in the country, predicted that the number of new cases could rise to as much as 100,000 a day if current trends are not reversed. Several states that had opened up and seen a surge in new cases, such as Texas, Florida and California, began shutting down again. While the current situation is deteriorating, the prospects for a vaccine got much better. Pfizer and Biontech announced that a preliminary test of its virus stimulated antibodies in 24 out of 24 test subjects.
The economic numbers were uneven, with the unemployment rate falling to from 13.3% to 11.1% and the number of new jobs created in June rising by 4.8 million. New claims for unemployment rose by 1.4 million, bringing to total to a staggering 46 million in the last 15 weeks. Existing home sales dropped 18% and car sales fell 33%. Fed chairman Powell said it would be difficult for the economy to sustain a major rebound while the virus is so widespread and people are fearful to go out and shop and interact in group settings.
Despite all of this bad news, many stocks continued to rise, with the NASDAQ Index hitting an all time record high. The just concluded second quarter had the highest return for any quarter since 1987. It continues to be led by the big tech giants such as Microsoft, Apple, Amazon and Facebook which continue to have a lot of momentum.
One way to profit from the coronavirus pandemic is by owning shares in the health care companies that are trying so hard to find a solution through a vaccine or treatment. Most of the major drug companies such as Pfizer, Merck, Johnson and Johnson, Moderna and Gilead all are developing potential breakthroughs. The two lab testing companies, LabCorp and Quest Diagnostics, have been overwhelmed with new business. All these stocks have done well and probably will continue to do so.
Public health experts say that while over 2.6 million Americans have tested positive for the coronavirus, the actual number is more like 10 times that because so few people have been tested. Some people spend many hours in line to get a test and it can take days to get back results. A much simpler and easier way to know for sure if you have the virus or not is to contact my affiliate Let’s Get Checked in the Resource Center at moneyanswers.com. They offer tests for many medical conditions as well as for COVID-19. You just prick your finger and collect a drop of blood and mail your sample to the lab and you get results online in a day or two.
Covid-19 at home test: https://tinyurl.com/yc4h5bon