What The GOP Stimulus Does For Families

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Posted: Jul 27, 2020 11:23 AM
What The GOP Stimulus Does For Families

Source: AP Photo/J. Scott Applewhite

Looking for the GOP stimulus plan today, as report suggest there will be special attention to families and children.

  • $1.200 direct payment
  • Moratorium on evictions
  • $100 billion on schools

The sticky point is Mnuchin’s plan to limit unemployment benefits to 70% of paychecks.  I’m not sure if they are basing this on median or average incomes. 

If it’s the latter, then the change from current benefits with $600 from the federal government is limited for states with lower max unemployment benefits.

Mnuchin Plan

Max State UI

Average Income

70% Plan

Weekly Loss

Alabama

$275

$51,347

$691

-$184

Arizona

$240

$57,422

$773

-$67

Florida

$275

$52,728

$710

-$165

Geogia

$365

$58,280

$785

-$180

Louisana

$247

$53,095

$715

-$132

Michgan

$235

$58,132

$783

-$52

Tennessee

$275

$59,121

$796

-$79

North Carolina

$350

$56,343

$758

-$192

Kentucky

$552

$50,701

$683

-$469

 

Mnuchin Plan

Max State UI

Median Income

70% Plan

Weekly Loss

Alabama

$275

$33,740

$454

-$421

Arizona

$240

$37,020

$498

-$342

Florida

$275

$34,560

$465

-$410

Geogia

$365

$35,950

$484

-$481

Louisana

$247

$33,390

$449

-$398

Michgan

$235

$37,620

$506

-$329

Tennessee

$275

$34,890

$470

-$405

North Carolina

$350

$35,750

$481

-$469

Kentucky

$552

$34,650

$466

-$686

 

Portfolio Approach

Today’s Session

There is so much happening this week. I suspect the market trades in a narrow range until midweek.

  • Biggest week for earnings
  • Federal Reserve FOMC
  • Stimulus news from Washington, D.C.
  • Big Tech CEO head to Washington, D.C.

This morning, durable goods came in at 7.3% in June against consensus of 5.4%.

June Durable Goods

To see the chart, click here.

Business Investment Soared

Equities have begun to drift ahead of the open.  Stocks are not down enough to lure aggressive buyers, but sellers are reluctant to unload here and would need to see more pressure.