Day Traders Diary
The major averages finished lower following a number of disappointing earnings while lawmakers continue their debate over the next coronavirus relief package. The Dow Jones Industrial Average finished down 205 points. The Nasdaq Composite dropped 1.27%, while the S&P 500 dropped 0.65%.
Senate Majority Leader Mitch McConnell unveiled the Republican coronavirus relief plan Monday after the bell. The legislation would include relief for jobless Americans, another direct payment to individuals of up to $1,200, more Paycheck Protection Program small business loan funds, among other provisions, but the unwillingness to negotiate over liability protection may be a sticking point.
The bill comes as coronavirus cases continue to rise across the U.S. So far, more than 4.2 million infections have been confirmed along with at least 147,303 deaths in the U.S., according to Johns Hopkins University.
Disappointing quarterly numbers from McDonald's and 3M are pushing the major averages lower. McDonald's shares slid 2.1% after the fast-food giant posted a quarterly profit that missed analyst expectations along with a 30% drop in overall revenue. 3M, another Dow component, dropped 1.2% after its quarterly earnings and revenue were lower than expected.
Visa, Advanced Micro Devices, Amgen, eBay, Mondelez International and Starbucks report after the bell on Tuesday. This is the busiest week of the corporate earnings season, with Apple and Amazon among the companies set to report later this week.
Thus far, more than 160 S&P 500 companies have reported calendar second-quarter earnings. Of those companies, 81% have beaten expectations, according to data from The Earnings Scout.
All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.