Tuesday Takeaway

Market Update: June 2, 2020

Posted on June 01, 2020

The Markets

Are those green shoots? In economic terms, green shoots are signs of improvement. If you were paying close attention, you might have seen some in economic data released last week. They weren’t apparent in the Bureau of Labor Statistics report on the United States economy. Gross domestic product (GDP), which is the value of all goods and services produced in our country, shrank by 5 percent during the first quarter of 2020. The contraction reflected lower spending by Americans and American businesses due to COVID-19. The Congressional Budget Office (CBO) estimated:
“…from March 21 to March 31, when many social distancing measures were in place, spending may have been down by almost 28 percent as a result of the pandemic; spending on accommodations and restaurants declined by 60 percent to 80 percent; and spending for some goods (such as clothing) dropped by similar amounts.”
Spoiler alert: The numbers for the second quarter are expected to be far worse. However, economic growth is expected to bounce as consumer spending, which accounts for two-thirds of GDP, resumes. The green shoots were found in unemployment. As businesses reopened and shelter-in-place orders eased, the U.S. unemployment rate dropped to 14.5 percent during the week of May 16 from 17.1 percent the previous week, according to the Department of Labor. Green shoots were also sprouting from the University of Michigan’s May Consumer Sentiment Survey, which reported “…a growing number of consumers expected the economy to improve from its recent standstill…” The Index of Consumer Sentiment ticked higher from April to May. The United States experienced highs and lows last week. A NASA public-private partnership launched the Dragon capsule into orbit. Its astronauts are headed for the International Space Station. Meanwhile, down on Earth, protests for justice in the death of George Floyd devolved into rioting. Major U.S. indices finished the week higher.  


FYI: It’s June

One side effect of COVID-19 quarantine is losing track of days. When routines are disrupted and recurring activities that distinguish one day from the next are discontinued, it can be difficult to know whether it’s Monday or Thursday. Fortunately, the United States has enough national holidays to clearly delineate one day from the next. Here is a list of some June holidays to help you keep track of days: June 1: World Reef Awareness Day June 2: National Bubba Day June 3: National Running Day June 4: National SAFE Day June 5: National Doughnut Day June 6: D-Day – remembering the day Allied troops landed on the beaches of Normandy June 7: National Cancer Survivor’s Day June 8: National Best Friends Day June 9: National Earl Day June 10: National Iced Tea Day June 11: National Making Life Beautiful Day June 12: National Loving Day June 13: National Kitchen Klutzes of America Day June 14: National Flag Day and the Birthday of the U.S. Army June 15: National Smile Power Day June 16: National Fudge Day June 17: National Eat Your Vegetables Day June 18: National Go Fishing Day June 19: Juneteenth – commemorating the end of slavery June 20: Summer Solstice – the start of summer in the Northern Hemisphere June 21: Father’s Day – celebrating dear old dad June 22: National Chocolate Eclair Day June 23: National Pink Day June 24: National Parchment Day June 25: National Leon Day June 26: Take Your Dog to Work Day June 27: National PTSD Awareness Day June 28: National Logistics Day June 29: National Waffle Iron Day June 30: Social Media Day (As if that weren’t every day!) By the end of June, we should be on our way to a new normal and able to use the coronavirus lockdown as a point of reference for tracking events.    

New TSA Rules for Travelers

With states beginning to allow businesses to open while relaxing other Coronavirus-related restrictions, people are starting to travel again. If you’re headed to the airport in the next few weeks, you’ll notice some safety changes in how the TSA keeps passengers at a safe distance and limits the need to touch items. Passengers will scan their own boarding passes and are now allowed to carry on 12 ounces of hand sanitizer, although all other liquids are still restricted to 3.4 ounces. To learn about other changes you might see at the airport, read this Travel and Leisure article or watch the video: New TSA Rules for Travelers   ]]>

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