The Delta Variant and the Economy
Last week, anxieties briefly crept into sentiment amid rising Covid cases. Outside of health concerns, investors are reviewing various signals as they try to get a read on economic growth and future corporate earnings.
- Some good news on Covid: the seven-day moving average of new U.S. Covid cases declined over the last two days (through Aug 22), according to the CDC Covid tracker.
On the economic front, the data have generally been positive.
Retail sales declined last month, according to the U.S. Census. Some blamed the drop on Covid, but waning stimulus probably played a bigger role.
- Restaurants and bars saw a surge in spending, which would suggest the decline was not Covid-related.
The Conference’s Board’s Leading Index, which is an index of ten leading economic indicators, rose more than expected in July.
- It is “consistent with strong economic growth in the second half of the year,” the Conference Board said.
A pandemic low in weekly first-time claims for jobless benefits also suggests that we have yet to see much of an economic impact from the summer’s rise in Covid.
Investor’s corner
When it comes to daily headlines, be careful with knee-jerk reactions. Many variables can influence the short- and longer-term direction of stocks.
Investors that diversify and take a longer-term, patient approach have historically reaped rewards.
Created 2021-08-27 21:19:55
