Dow recovered 1371, advancers over decliners 12-1 & NAZ advanced 405. The MLP index went 3+ to 85 & the REIT index bounced back 14 to 266. Junk bond funds were bought for their extraordinary high yields & Treasuries retreated after recent purchasing. Oil rose in the 23s & gold rocketed ahead 69 to 1636.
AMJ (Alerian MLP Index tracking fund)
Equities surged amid investor optimism that members of Congress will overcome their differences to reach a deal on a $1.6T Covid-18 stimulus package. The Dow surged 1480 (8%) while the S&P 500 & NAZ also advanced. The early gains came after the major averages plunged yesterday despite the Federal Reserve announcing it would buy unlimited amounts of assets to support the economy. The 3% drop left the Dow at a 3-year low & on track for its worst month since 1931, early in the Great Depression. Commodities gained, with gold rallying 4.8% to $1648 an ounce & West Texas Intermediate crude oil up 1.2% at $23.65 a barrel. Markets surged across Europe, with Germany's DAX leading the way, up 7.2%, while France's CAC & Britain’s FTSE also went up. In Asia, Japan's Nikkei soared 7.1%, Hong Kong's Hang Seng spiked 4.5% & China's Shanghai Composite gained 2.3%.
Pres's chief economic adviser Larry Kudlow said the White House is planning to re-examine some of the restrictions that were put in place to contain the spread of the coronavirus as the US enters its 2nd week of minimal economic activity. "There’s no question we have to think seriously. I would say, after the 15-day period is over, which I guess ends after this weekend, we will take another look at targeting areas that are safe enough," Kudlow said. With the economy beset by staggering job losses as American life essentially comes to a standstill, some advisers & business leaders have pressed Trump to ease social-distancing guidelines. Still, public health officials, including Dr Anthony Fauci, the nation's top infectious disease expert, have cautioned it will take several more weeks to beat back the outbreak until people can resume their lives in a more normal manner. Kudlow declined to provide specifics, but said that "with the help of health specialists," the administration is looking at places that are not hot examples, for instance, to "expand business reach and reduce the shut-in that's taken over the economy." "A lot of people in business and finance, small business people too, that's very important, have called us and talked to us to see if we could liberalize and perhaps target more and stop as many shutdowns as we have," Kudlow added. "That doesn’t mean we’re going to leave social distancing, that doesn’t mean we’re going to walk away from the mitigating advice that we've received from our health specialists. It just means we’re going to take a slightly different look at this." Kudlow said Trump is interested in doing "something in the next couple of weeks."
As China hopes to begin recovering from the devastating coronavirus outbreak, it is looking to juice its economy. According to a report yesterday, China is planning to inject $7T into its economy in the aftermath of the coronavirus. However, among the projects the plan is said to include are coal-fired power plants, which has sparked criticism among detractors that the gov could be leaning toward more of a reliance on fossil fuels. The UN warned in a report last year that fossil fuel production, worldwide, by 2030 could be as much as 150% above levels targeted in the Paris Climate Accord. And while many countries are trying to reduce their reliance on fossil fuels, a report last year showed that China was still burning a lot. The country had enough coal-fired plants to power France & more plants were under construction. The coronavirus originated in Wuhan, China, & killed more than 3200 people in the country. Last Thurs was the first time China reported no new infections since the outbreak began in Dec. There are currently 81K confirmed cases in China & the US has 41K.
Ford (F) will assemble plastic face shields as well as work with 3M (MMM), a Dow stock & a Dividend Aristocrat, & GE Heakthcare on respirators & ventilators as more & more Americans test positive for coronavirus. The announcement comes as hospitals face a shortage of personal protective equipment like masks. Ford will assemble plastic face shields as well as work with MMM & GE Heakthcare on respirators & ventilators as more & more Americans test positive for coronavirus. The announcement comes as hospitals face a shortage of personal protective equipment like masks. Ford, with the help of the United Auto Workers union plans to produce roughly 75K face shields this week at a subsidiary facility in Plymouth, Michigan, & scale up to 100K face shields per week. "Nobody's talked about the financial implications of this because this is a national emergency, and we'll sort all that out later," Bill Ford, Fords exec chairman, said. "We need to get going. ... We haven't talked to anybody about any kind of reimbursement." "We're doing it on our own," Ford continued. "Obviously, the White House has put a call out for companies to help. Frankly, we were getting all this in motion before that."
Investors liked the news they heard & are busy buying stocks with very high yields. That's what happens in a vastly oversold market. Tomorrow will test if the enthusiasm has legs. In the meantime, Congress still has to sign of on a stimulus package which remains uncertain currently. There are enormous problems controlling the virus & the economy needs a LOT of help. For example, the airlines are thinking about shutting down their business.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 23.60 | +0.24 | +1.0% |
| GC=F | Gold | 1,646.30 | +78.70 | +5.0% |
Equities surged amid investor optimism that members of Congress will overcome their differences to reach a deal on a $1.6T Covid-18 stimulus package. The Dow surged 1480 (8%) while the S&P 500 & NAZ also advanced. The early gains came after the major averages plunged yesterday despite the Federal Reserve announcing it would buy unlimited amounts of assets to support the economy. The 3% drop left the Dow at a 3-year low & on track for its worst month since 1931, early in the Great Depression. Commodities gained, with gold rallying 4.8% to $1648 an ounce & West Texas Intermediate crude oil up 1.2% at $23.65 a barrel. Markets surged across Europe, with Germany's DAX leading the way, up 7.2%, while France's CAC & Britain’s FTSE also went up. In Asia, Japan's Nikkei soared 7.1%, Hong Kong's Hang Seng spiked 4.5% & China's Shanghai Composite gained 2.3%.
Dow up 1,400+ as Congress nears stimulus
Pres's chief economic adviser Larry Kudlow said the White House is planning to re-examine some of the restrictions that were put in place to contain the spread of the coronavirus as the US enters its 2nd week of minimal economic activity. "There’s no question we have to think seriously. I would say, after the 15-day period is over, which I guess ends after this weekend, we will take another look at targeting areas that are safe enough," Kudlow said. With the economy beset by staggering job losses as American life essentially comes to a standstill, some advisers & business leaders have pressed Trump to ease social-distancing guidelines. Still, public health officials, including Dr Anthony Fauci, the nation's top infectious disease expert, have cautioned it will take several more weeks to beat back the outbreak until people can resume their lives in a more normal manner. Kudlow declined to provide specifics, but said that "with the help of health specialists," the administration is looking at places that are not hot examples, for instance, to "expand business reach and reduce the shut-in that's taken over the economy." "A lot of people in business and finance, small business people too, that's very important, have called us and talked to us to see if we could liberalize and perhaps target more and stop as many shutdowns as we have," Kudlow added. "That doesn’t mean we’re going to leave social distancing, that doesn’t mean we’re going to walk away from the mitigating advice that we've received from our health specialists. It just means we’re going to take a slightly different look at this." Kudlow said Trump is interested in doing "something in the next couple of weeks."
Kudlow: Trump to consider lifting anti-virus rules in the coming days
As China hopes to begin recovering from the devastating coronavirus outbreak, it is looking to juice its economy. According to a report yesterday, China is planning to inject $7T into its economy in the aftermath of the coronavirus. However, among the projects the plan is said to include are coal-fired power plants, which has sparked criticism among detractors that the gov could be leaning toward more of a reliance on fossil fuels. The UN warned in a report last year that fossil fuel production, worldwide, by 2030 could be as much as 150% above levels targeted in the Paris Climate Accord. And while many countries are trying to reduce their reliance on fossil fuels, a report last year showed that China was still burning a lot. The country had enough coal-fired plants to power France & more plants were under construction. The coronavirus originated in Wuhan, China, & killed more than 3200 people in the country. Last Thurs was the first time China reported no new infections since the outbreak began in Dec. There are currently 81K confirmed cases in China & the US has 41K.
China reportedly weighing $7T coronavirus stimulus plan
Ford (F) will assemble plastic face shields as well as work with 3M (MMM), a Dow stock & a Dividend Aristocrat, & GE Heakthcare on respirators & ventilators as more & more Americans test positive for coronavirus. The announcement comes as hospitals face a shortage of personal protective equipment like masks. Ford will assemble plastic face shields as well as work with MMM & GE Heakthcare on respirators & ventilators as more & more Americans test positive for coronavirus. The announcement comes as hospitals face a shortage of personal protective equipment like masks. Ford, with the help of the United Auto Workers union plans to produce roughly 75K face shields this week at a subsidiary facility in Plymouth, Michigan, & scale up to 100K face shields per week. "Nobody's talked about the financial implications of this because this is a national emergency, and we'll sort all that out later," Bill Ford, Fords exec chairman, said. "We need to get going. ... We haven't talked to anybody about any kind of reimbursement." "We're doing it on our own," Ford continued. "Obviously, the White House has put a call out for companies to help. Frankly, we were getting all this in motion before that."
Ford producing supplies with 3M, GE
Investors liked the news they heard & are busy buying stocks with very high yields. That's what happens in a vastly oversold market. Tomorrow will test if the enthusiasm has legs. In the meantime, Congress still has to sign of on a stimulus package which remains uncertain currently. There are enormous problems controlling the virus & the economy needs a LOT of help. For example, the airlines are thinking about shutting down their business.
Dow Jones Industrials
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