Has the U.S. economy entered a new phase of expansion? Maybe not just yet. Today, in roller-coaster fashion, the S&P 500 went positive for the year, then sold off - a reminder that investors are not completely optimistic on the stock market. The bad news: Covid-19 cases are spiking. The good news: the FDA approved the next phase of vaccine trials, which will start later this month. As the second wave continues, California announced new lock-down orders - additional states will, more than likely, follow their lead. Corporate profits of publicly traded companies are now in the spotlight, as second quarter profits will be released, which started today. Although, they are expected to show the worst drop in profits since the Financial Crisis of 2008. All risks aside, stock markets around the world are showing strength. The United States and Emerging Markets are well above their long-term trends (200-day) and International Markets are hovering right at their long-term trend (200-day).
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