Market roundup for July 30
SAN JUAN — Global stock markets fell sharply Wednesday as two economic reports presented a dire picture of the significant damage the coronavirus pandemic has inflicted on the U.S. and German economies.
- In the United States, real gross domestic product (GDP) decreased 32.9 percent in the second quarter, which is less than the projected 34.1% but much worse than the 5% drop in the first quarter.
The U.S. Department of Labor reported that new unemployment claims rose for a second week in a row, by 12,000, to 1.43 million, or 0.7%.
The decline in second-quarter GDP is a direct reflection of the COVID-19 lockdown orders issued since March. The significant decrease in GDP raised fears among investors that the economic recovery may be severely affected.
- Germany’s GDP contracted 10.1%, the most significant reduction in 50 years, and the contraction erased 10 years of export growth.
Another company the defied the odds with its earnings was Apple, (AAPL) reporting revenue of $59.7 billion, or 11% higher, and net income of $11.2 billion, setting a new record for the June quarter. Apple blew past expectations that its business would lose sales due to the pandemic and ensuing closure of Apple stores worldwide.
- The Dow Jones Industrial Average closed at 26,313.65, down 225.92 points, or 0.85%.
- The Standard & Poor’s 500 Index closed at 3,246.22, down 12.22 points, or 0.37%.
- The NASDAQ Composite Index closed at 10,587.81, up 44.87 points, or 0.43%.
- The Birling Capital Puerto Rico Stock Index closed at 1,565.72, up 34.94 points, or 2.28%.
- The U.S. Treasury 10-year note closed up at 0.55%.
- The U.S. Treasury 2-year note closed up at 0.11%.