US businesses saw an uptick in activity into the beginning of July as states eased restrictions to contain the novel coronavirus chaos, a Fed report showed Wednesday, but remained uncertain about the economic outlook going forward.
The picture illustrated in the Fed’s latest snapshot of firms’ views mirrors wider economic data, from the unemployment rate to factory activity, which have improved since stay-at-home orders were eased in many parts of the country by the end of May, but could soon show signs of faltering.
“Economic activity increased in almost all Districts, but remained well below where it was prior to the COVID-19 pandemic,” the Fed said in its report, referencing the respiratory disease caused by the virus. “Outlooks remained highly uncertain, as contacts grappled with how long the COVID-19 pandemic would continue and the magnitude of its economic implications.“
The Fed’s survey, known as the “Beige Book,” was conducted across its 12 districts from the end of May through 6 July.
The Fed’s report showed that during the survey period a wide array of industries from leisure and hospitality to professional and business services picked up, but remained weak compared to year-ago marks.
Wednesday, the major US stock market indexes finished at: DJIA +227.51 at 26870.10, NAS Comp +61.91 at 10550.58, S&P 500 +29.04 at 3226.56
Volume: Trade on the NYSE came in at 951-M/shares exchanged
HeffX-LTN’s overall technical outlook for the major US stock market indexes is Very Bullish in here.
- NAS Comp +17.6% YTD
- S&P 500 -0.1% YTD
- DJIA -5.9% YTD
- Russell 2000 -11.4% YTD
Looking Ahead: Investors will receive the weekly Initial and Continuing Claims report, Retail Sales for June, the Philadelphia Fed Index for July, the NAHB Housing Market Index for July, Business Inventories for May, and Net Long-Term TIC Flows for May Thursday.
Have a healthy day, Keep the Faith!