2020 has been a year of records, both record losses and record gains. After a brutal spring, markets and the economy have mostly rebounded in the summer and fall. We take a closer look at October 26’s record gross domestic product (GDP) report, which may have implications for the upcoming presidential election.
Speculation has been increasing that the November election results may be delayed or disputed, or both. A contested election might affect financial markets in several ways. Also, the news that President Donald Trump has tested positive for COVID-19 may potentially impact markets as well.
This earnings season, corporate America will get closer to the return of earnings growth—which is likely in the first quarter of 2021. We probably will have another decline in profits for third quarter 2020, though potentially only about half as big as last quarter’s. And we will undoubtedly hear more about uncertainty— both COVID-19 and election-related. We also highlight three things investors can watch this earnings season.
The recent correction in the S&P 500 Index’s technology sector presents a unique challenge to markets following a historic stretch of outperformance as technology’s share of the market has ballooned in size. Despite September weakness in this sector that has dragged the broader market lower, we expect technology leadership to continue given supportive underlying fundamental and technical conditions.
- Central Bank Season
- The Bull Case for Stocks
- Top 10 Investor Questions
- Election Preview Part 2: A Trump Second Term - Upside and Risks
- Election Preview Part 1: A Biden Presidency - Upside and Risks
- 5 Earnings Seasons Takeaways
- Dissecting the Disconnect
- Calendar Concerns and Gold Gains
- Stalling Economic Recovery May Slow Stock Market Rally
- An Earnings Season to Forget