Weekly Financial News Rundown

Cut through the noise with our Financial News Breakdown

There are a number of hot topics in the news this week that have potential to impact your financial plan as well as the financial markets in general. With the 24-hours a day news cycle in over-drive it can be difficult to cut through the noise to figure out what really matters to you. Here's our breakdown of the "Big 3" that we are watching this week.

As discussed last week, Congress continues negotiations regarding an additional round of fiscal stimulus. Although there are billions of unused dollars earmarked for corporations and state governments from past stimulus packages, Congress members believe they need to push through another $1 trillion+ package to provide  fiscal resources to protect the economy, individual consumers, and schools as they attempt to reopen in the fall.

Negotiations between Republicans and Democrats will kick into high gear this week. With this being an election year and apparent consensus regarding the need for fiscal aid we anticipate that a deal will be reached. As with all things in Washington D.C. there will likely be some twists in the road peppered with spicy rhetoric between the parties. As of this writing there is very little concrete information regarding what will be included in this stimulus round. We know for certain the enhanced unemployment benefit of $600 extra per week will be decreasing to somewhere in the $100 to $200 per week. It appears that another $1200 check per individual will be sent to those who meet the income qualifications. Additionally, we anticipate additional funding for virus testing, vaccine development, and support for school reopening to be on the table.

For the most recent analysis on this topic you can read this article from the Wall Street Journal.

On Wednesday, the CEO's of Apple, Amazon, Google, and Facebook will testify before the House Antitrust Subcommittee. What is unique about these testimonies is that there appears to be bi-partisan momentum in Congress that these companies have in various ways acted inappropriately and need to be held accountable for their actions. Expect aggressive questioning from the committee members desiring to appeal to voters regarding their attempt to oppose these companies. In turn, we believe there is potential for markets to react negatively on Wednesday. That said, we care more about the long-term impact to these companies, and these testimonies will be the best indication of where congress may take action to curb these companies in the future.

Check out this article for a great primer on the unique issues facing all four companies and the overall importance of these testimonies.

**Why do earnings reports matter? Read more here.**

3. 2nd Quarter Earnings Reports Hit Their Peak

This week is jam packed with companies across all sectors and size reporting. Thursday will be the key day for markets as the tech giants are now all reporting earnings on that day due to Facebook moving their earnings back a day to avoid increased volatility from the Tech CEO congressional panel. Thursday will have an out sized impact on the market as 40% of the major indexes are comprised of Amazon, Alphabet, Apple, and Facebook. While investors will be observing how these giant companies navigated the second quarter, they will be most interested in the future plans of these companies for an indication of the health of the company as well as the sectors in which they operate.

Creekmur Wealth Advisors may be reached at 866-358-4441 or Info@Creekmurwealth.com.