Another day of musical chairs in the markets as the three main market indexes shifted again. The Nasdaq sunk 0.8%, while the Dow Jones gained 0.6% and the S&P 500 snuck 0.2% higher.
Tech dipped downward from the big Amazon gains yesterday, giving Apple, Amazon, Netflix, Facebook, and Microsoft a 1% loss on the day, while Alphabet saw a 0.5% loss.
As the markets closed, United Airlines announced a second-quarter loss of $1.6 billion. While the stock got jumpy during the announcement, at the time of publishing, the share price was up about 2% in after-market trading. Meanwhile, Delta closed the day up 0.8%, American Airlines stayed even with no gains on the day at market close, and Southwest Airlines was up 1.94% on the day.
The European Commission approved a 750 billion euro stimulus to help the European Union countries and industries that have been impacted by Coronavirus. Meanwhile, the United States anxiously awaits plans for next steps in Coronavirus relief plans as programs such as the $600 unemployment benefit and other mortgage and rent relief programs reach their expiration dates.
Thanks in part to the “Robinhood Retail Investor” types, Europe is seeing rallies around ETFs. Some of the best performing ETFs in Europe include those benefiting from the work-from-home policies in the wake of the COVID-19 pandemic. Among the most popular ETFs in Europe include Van Eck Vectors Video Gaming and eSports Fund, which has around $450 million in invested funds. First Trust Cloud Computing ETF has also attracted close to $340 million in investments.
“If you go back to your school days — you have a sharp movement down, you have a bounceback, but… the growth rate in the economy going forward will be less than people think,” Leon Cooperman said and predicted the market will see a square-root shaped recovery, similar to his thoughts following the 2009 market crash.
Leon Cooperman is the chairman and CEO of Omega Advisors, a New York-based investment advisory firm managing over $3.3 billion in assets under management. According to the billionaire investor, at current levels, the market is overvalued, having failed to price in, or factor, some of the developments that signal economic growth stagnation.