Dow surged 1000, advancers over decliners about 9-1 & NAZ jumped up 259. The MLP index went up 3+ to 93 & the REIT index rose 15+ to the 304s. Junk bond funds remain in demand for their high yields while safe haven Treasuries were also aggressively bought, Oil dropped to the 23s & gold gained 18 to 1652.
AMJ (Alerian MLP Index tracking fund)
The number of Americans filing for unemployment surged to 3.28M last week, shattering a decades-old record in jobless claims as the coronavirus pandemic forced businesses around the country to shutter their doors. The number eclipsed the previous record of 695K set in 1982 & is well above the levels seen in the midst of the 2008 financial crisis, the Labor Dept said in its weekly report. The data dates back to 1967. Estimates varied drastically for how high the number of people who applied in mid-Mar for unemployment benefits would be, ranging from 1-2.25M who lost their jobs last week, but economists agreed it would be grim. The 4-week moving average was 1.7M, an increase of 27K from the previous week's revised average. Restaurants, bars, hotels, airlines, cruise lines, automakers & entertainment venues have been hit hard by the pandemic as cities and states, trying to mitigate the spread of the virus, have ordered the closure of non-essential businesses & told residents to stay at home. Jobless claims bring the first hard evidence that the novel coronavirus is bringing the nation's economy to a grinding halt. But economists have warned the number will likely continue to rise in the coming weeks. Laid-off workers reported waiting hours on the phone last week to apply for unemployment benefits. Websites in multiple states, including NY & Oregon, crashed because so many people were trying to apply at once. Claims increased in all 50 states DC. with 9 states reporting increases of at least 100K from the previous week. Pennsylvania reported the biggest number of claims, with 379K, followed by Ohio at 187K & California at 186K. Lawmakers are looking to provide relief to laid-off workers with a $2T stimulus package, the largest relief bill in recent memory, that's awaiting approval by the House. In addition to giving adults who earn less than $99K annually up to $1200 checks, the bill would expand unemployment benefits. Federal Reserve Chairman Jerome Powell, during a rare televised interview today, said the US economy may already be in a recession, but said the downturn is unlike any other the US has seen before.
The number of unemployed Americans has dramatically increased this month due to the coronavirus pandemic, according to National Economic Council Director Larry Kudlow, but he said planned economic relief should help the economy recover. Kudlow said proposed stimulus plans, including a $2T package approved by the Senate overnight & as much as $4T the Federal Reserve could use to stabilize markets, would hasten the economy’s recovery. “This is going to be weeks and months, not years,” Kudlow added. He touted the plan as one which would keep further people off unemployment by keeping businesses’ payrolls steady. Lawmakers’ stimulus plan, which still requires approval in the House, includes $500B in relief for corps, $15.5B for food stamps, $130B for hospitals, $150B for local govs & $46B for airlines. Combined with the Fed's stabilizing funds, it's the largest relief package in US history, Kudlow said. “When you put the two together, you’re looking at a roughly $6 trillion package,” he added. Kudlow also noted that news of the stimulus has already turned the stock market around. “Generally speaking, if you’re not working, either because you’re sick or get laid off, this is not a function of the economy per se, this is a function of this massive external problem called the coronavirus,” he continued. While officials have been working on a relief plan, the virus has continued to spread. There were more than 450K cases worldwide, including more than 60K in the US. More than 800 in the US have died from the coronavirus.
Federal Reserve Chair Jerome Powell is trying to reassure Americans about this unprecedented financial crisis ignited by the coronavirus pandemic. “The Federal Reserve is working hard to support you now, and our policies will be very important when the recovery does come, to make that recovery as strong as possible,” Powell said. “Really the message is this: This is a unique situation, it’s not like a typical downturn. We’ve asked people to step back from economic activity really to make an investment in our public health. They’re doing that for the public good, and this bill that’s just passed is going to try to provide relief and stability to those people,” Powell added, referring to the historic $2T emergency relief package approved by the Senate last night. The US economy has essentially shut down in recent weeks to address the COVID-19 pandemic. The business closures and stay-at-home advisories have caused unprecedented financial & societal disruptions. The Senate stimulus bill, the largest economic rescue package in US history, includes direct payments to individuals, stronger unemployment insurance, loans & grants to businesses & more health-care resources for hospitals, states & municipalities. The Fed has also stepped in in an effort to shore up the economy as the coronavirus outbreak & subsequent business slowdown continues to roil markets. Among other things, the central bank has slashed interest rates to near zero & announced an unprecedented unlimited asset purchase program. The Fed's primary small business program is the Main Street Lending Program, where the Treasury is underwriting loans going directly to small businesses. The Fed is also buying bonds that are backed by auto loans, credit card loans, student loans & some small business loans backed by the Small Business Administration. Powell emphasized that the Fed’s actions are a way to provide credit to businesses small & large.
Powell’s message to America: The Fed ‘is working hard to support you’
Investors bought stocks out of the gate & have kept coming. But the $2T has not been fully signed off yet. The House has to approve the package, &, if there are differences (which is likely), they will have to be worked out before Trump signs the bill. Given the track record of those guys in DC, there can be delays. In the meantime, enjoy the higher values on securities.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 23.65 | -0.84 | -3.4% |
| GC=F | Gold | 1 ,663.40 | +30.00 | +1.8% |
The number of Americans filing for unemployment surged to 3.28M last week, shattering a decades-old record in jobless claims as the coronavirus pandemic forced businesses around the country to shutter their doors. The number eclipsed the previous record of 695K set in 1982 & is well above the levels seen in the midst of the 2008 financial crisis, the Labor Dept said in its weekly report. The data dates back to 1967. Estimates varied drastically for how high the number of people who applied in mid-Mar for unemployment benefits would be, ranging from 1-2.25M who lost their jobs last week, but economists agreed it would be grim. The 4-week moving average was 1.7M, an increase of 27K from the previous week's revised average. Restaurants, bars, hotels, airlines, cruise lines, automakers & entertainment venues have been hit hard by the pandemic as cities and states, trying to mitigate the spread of the virus, have ordered the closure of non-essential businesses & told residents to stay at home. Jobless claims bring the first hard evidence that the novel coronavirus is bringing the nation's economy to a grinding halt. But economists have warned the number will likely continue to rise in the coming weeks. Laid-off workers reported waiting hours on the phone last week to apply for unemployment benefits. Websites in multiple states, including NY & Oregon, crashed because so many people were trying to apply at once. Claims increased in all 50 states DC. with 9 states reporting increases of at least 100K from the previous week. Pennsylvania reported the biggest number of claims, with 379K, followed by Ohio at 187K & California at 186K. Lawmakers are looking to provide relief to laid-off workers with a $2T stimulus package, the largest relief bill in recent memory, that's awaiting approval by the House. In addition to giving adults who earn less than $99K annually up to $1200 checks, the bill would expand unemployment benefits. Federal Reserve Chairman Jerome Powell, during a rare televised interview today, said the US economy may already be in a recession, but said the downturn is unlike any other the US has seen before.
US unemployment claims shatter record as virus hammers economy
The number of unemployed Americans has dramatically increased this month due to the coronavirus pandemic, according to National Economic Council Director Larry Kudlow, but he said planned economic relief should help the economy recover. Kudlow said proposed stimulus plans, including a $2T package approved by the Senate overnight & as much as $4T the Federal Reserve could use to stabilize markets, would hasten the economy’s recovery. “This is going to be weeks and months, not years,” Kudlow added. He touted the plan as one which would keep further people off unemployment by keeping businesses’ payrolls steady. Lawmakers’ stimulus plan, which still requires approval in the House, includes $500B in relief for corps, $15.5B for food stamps, $130B for hospitals, $150B for local govs & $46B for airlines. Combined with the Fed's stabilizing funds, it's the largest relief package in US history, Kudlow said. “When you put the two together, you’re looking at a roughly $6 trillion package,” he added. Kudlow also noted that news of the stimulus has already turned the stock market around. “Generally speaking, if you’re not working, either because you’re sick or get laid off, this is not a function of the economy per se, this is a function of this massive external problem called the coronavirus,” he continued. While officials have been working on a relief plan, the virus has continued to spread. There were more than 450K cases worldwide, including more than 60K in the US. More than 800 in the US have died from the coronavirus.
Kudlow lays out America's timeline for coronavirus recovery
Federal Reserve Chair Jerome Powell is trying to reassure Americans about this unprecedented financial crisis ignited by the coronavirus pandemic. “The Federal Reserve is working hard to support you now, and our policies will be very important when the recovery does come, to make that recovery as strong as possible,” Powell said. “Really the message is this: This is a unique situation, it’s not like a typical downturn. We’ve asked people to step back from economic activity really to make an investment in our public health. They’re doing that for the public good, and this bill that’s just passed is going to try to provide relief and stability to those people,” Powell added, referring to the historic $2T emergency relief package approved by the Senate last night. The US economy has essentially shut down in recent weeks to address the COVID-19 pandemic. The business closures and stay-at-home advisories have caused unprecedented financial & societal disruptions. The Senate stimulus bill, the largest economic rescue package in US history, includes direct payments to individuals, stronger unemployment insurance, loans & grants to businesses & more health-care resources for hospitals, states & municipalities. The Fed has also stepped in in an effort to shore up the economy as the coronavirus outbreak & subsequent business slowdown continues to roil markets. Among other things, the central bank has slashed interest rates to near zero & announced an unprecedented unlimited asset purchase program. The Fed's primary small business program is the Main Street Lending Program, where the Treasury is underwriting loans going directly to small businesses. The Fed is also buying bonds that are backed by auto loans, credit card loans, student loans & some small business loans backed by the Small Business Administration. Powell emphasized that the Fed’s actions are a way to provide credit to businesses small & large.
Powell’s message to America: The Fed ‘is working hard to support you’
Investors bought stocks out of the gate & have kept coming. But the $2T has not been fully signed off yet. The House has to approve the package, &, if there are differences (which is likely), they will have to be worked out before Trump signs the bill. Given the track record of those guys in DC, there can be delays. In the meantime, enjoy the higher values on securities.
Dow Jones Industrials
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