Wells Fargo Misses Earnings, Tech Titans Tilt Downward & COVID Climb Continues – Daily Financial News Summary For Tuesday, July 14, 2020
What goes down, must come up. Another tumultuous day in the markets. The S&P 500 was up 1.4%, the Nasdaq up 1%, and the Dow Jones managed to climb 2.3% on Tuesday.
While the markets were up, some of the tech titans saw losses, including Amazon and Netflix being down more than 1%, while Facebook and Alphabet/Google, were down just 0.1%.
Netflix saw losses after it was downgraded by UBS from buy to neutral over concerns of the stock being overvalued. It is up 60% on the year, much of which is a result of more people staying at home due to Coronavirus quarantines. While it closed being down just around 1%, at moments in the trading day, it was down as much as 6.7%.
Wells Fargo had a tough earnings reporting day after revealing it would be cutting its dividend to 51 cents per share, which is 10 cents less than prior dividends. They also reported a $2.4 billion loss, which resulted in a 5% slide in the share price.
JP Morgan Chase, on the other hand, saw a 79% leap in trading revenue to $9.7 billion as a result of equities and bond trading. They also exceeded the total revenue estimate of $30.3 billion with revenues reaching $33 billion. It closed the day 0.57% higher.
Five Personal Finance Lessons The COVID-19 Pandemic Has Taught Us
The COVID-19 Pandemic has dramatically affected the social and financial lives of people. Many businesses have been impacted, resulting in reduced salaries and even furloughing employees as uncertainty continues to grow. The pandemic has taught several lessons about personal finances that they can adapt to when facing an economic downturn. Here are five personal finance lessons from the COVID-19 pandemic:
The first lesson that the pandemic has taught us is that our finances are fragile, evidenced by the growing unemployment. Most people have lost their sources of income, which further stresses the need to have an emergency fund. With the pandemic realities, those who still have income have realized the need to save more every month.