Most state economies have reopened to some degree. And several states have seen a surge in infections at the same time. From this, we can conclude one thing — the virus is not taking the summer off as some had speculated might happen. On the other hand, can we say that the reopenings are causing the spikes? Certainly, increased activity should cause an increase in infections. On the other hand, not every state which is opening is seeing the same spike.
The markets are watching this relationship very closely. We mentioned previously that the stock market comeback was extremely dramatic. But we have seen some precipitous drops as well. News of surging cases has made the markets nervous, just as news of possible drugs or vaccines have sent the markets into a frenzy. Thus, the markets are reacting to medical news as much as economic news today.
Medical news is not scheduled, but economic news does follow the calendar. At the end of this week we will see the jobs data for June. It will be a very interesting report as May’s numbers were better than expected, but there was much speculation that the avalanche of unemployment claims was overwhelming tracking systems. Originally, we thought the first sign of rebound would be this report, but since we saw this rebound in May, we are not quite sure what we will see in June. Stay tuned for what could be a wild ride.
Dave Hershman is the top author in the mortgage industry. Dave has published seven books, as well as hundreds of articles and is the founder of the OriginationPro Marketing System and Mortgage School. Want to send this commentary and other news in a personalized format to your sphere database or on social media? Sign up for a free trial at www.OriginationPro.com.