Dow dropped 913 (session lows), decliners over advancers 4-3 & NAZ fell 271. The MLP index bounced back 7 to 90 & the REIT index sank 12 to 266s. Junk bond funds rose in price & Treasuries remained in heavy demand. Oil sank 5+ to the 19s & gold went up 10 to 1489.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
As the US gov takes unprecedented measures to stop the spread of coronavirus throughout the country, companies are working at “rocket speed” to develop a vaccine. During a Facebook Live interview with Facebook CEO Mark Zuckerberg yesterday, Dr Anthony Fauci – a top infectious disease expert at the National Institutes of Health – explained that 65 days after the US was able to access the gene sequence of the virus, the first injection was given to a volunteer for a phase-one trial. “That’s the fastest it’s ever been done,” Fauci said. Traditionally, from the time a company starts making a vaccine to the time it’s approved can take as many as 5-7 years, Fauci said. The downside, however, is that even at the seriously accelerated pace, a vaccine is unlikely to be available to Americans who come down with the coronavirus during the current outbreak. “Even at that rocket speed, it’s going to take a few months to show that the initial safety is OK – then you go into a phase-2 trial … that will take another 608 months to even know if it works,” Fauci explained. Overall, it’s not likely that testing would be completed for at least a year, potentially longer. “If we cycle to another season, that’s when the vaccine is going to be very relevant,” Fauci added. Fauci noted there were a number of already-developed drugs that were undergoing clinical trials to see if they would help combat the coronavirus – including Gilead Sciences’ Remdesivir & hydroxychloroquine, the latter of which has been approved for decades to treat malaria. Longer term, the goal is to develop a universal coronavirus vaccine that could fight against future iterations of the virus.
Walmart (WMT), a Dow stock & Dividend Aristocrat, announced last night that it plans to provide all associates in the US with a special cash bonus for their hard work & dedication during the coronavirus. “Walmart associates have gone above and beyond the call of duty in serving our customers during these unprecedented times,” said CEO Doug McMillon. “We want to reward our associates for their hard work and recognize them for the work that is in front of us.” The bonus will be $300 for full-time hourly associates & $150 for part-time hourly associates & will add up to more than $365M. Every hourly associate employed by the company as of Mar 1 will qualify & it will pay out on Apr 2. In addition to the special cash bonus, the company will accelerate the next scheduled quarterly bonus for store, club & supply chain associates a month early. The early payout will add up to $180M. Overall, the bonuses will put nearly $550M into associates' pockets who, according to a 2019 Environmental & Social Governance report, earn an average wage of $14.26 per hour. Hourly Q4 bonuses were paid this week, meaning hourly associates will receive bonus payments on Mar 19, Apr 2, Apr 30 & May 28. WMT also said it will hire 150K new associates through the end of May to work in stores, clubs, distribution centers & fulfillment centers. The stock dropped 5.48 to 114 (but still near recent record highs).
If you would like to learn more about WMT, click on this link:
club.ino.com/trend/analysis/stock/WMT?a_aid=CD3289&a_bid=6ae5b6f7
The Federal Reserve will extend its asset purchase program into short-term municipal bonds. Thus far, the central bank has limited its efforts to Treasuryie & mortgage-backed securities in an effort to keep liquidity flowing through the system & to stabilize credit markets. However, continued disruption in the markets for state & local gov debt promoted the Fed to take further action in its efforts to combat coronavirus effects. The market for munis this week has all but collapsed, with few willing to step in & buy the gov debt in the uncertainty of the current climate. The Fed said the move is “to enhance the liquidity and functioning of crucial state and municipal money markets.” The program will work thru the Money Market Mutual Fund Liquidity Facility announced earlier this week & offers an expansion of what had been a financial crisis-era program authorizing purchases of other assets. Expanding into munis is something that did not happen during the crisis. The Boston Fed will lend to eligible banks & other financial institutions that will be able to use single-state & other tax-exempt munis as collateral. Maturities can't exceed 12 months. The S&P Municipal Yield price index has tumbled 7.1% over the past week & was off 4.2% in the day before the Fed made the announcement. The Fed had previously announced a $700B asset purchase regime involving $500B in Treasuries & the remainder in MBS.
The Federal Reserve is expanding its asset purchases to include municipal bonds
In early trading the Dow made an attempt to rise, but pulled back to around breakeven. Then heavy selling hit in the last 2 hours. It closed close to the lows, near a measly 19K, down more than 10K from the records reached a month ago. While the short term outlook is dismal, the news about companies taking action to help get the US economy under control is encouraging. Oil is not getting much attention, but that is a huge negative story. Better news on the virus front will be needed to attract buyers. Try to have a restful weekend.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
As the US gov takes unprecedented measures to stop the spread of coronavirus throughout the country, companies are working at “rocket speed” to develop a vaccine. During a Facebook Live interview with Facebook CEO Mark Zuckerberg yesterday, Dr Anthony Fauci – a top infectious disease expert at the National Institutes of Health – explained that 65 days after the US was able to access the gene sequence of the virus, the first injection was given to a volunteer for a phase-one trial. “That’s the fastest it’s ever been done,” Fauci said. Traditionally, from the time a company starts making a vaccine to the time it’s approved can take as many as 5-7 years, Fauci said. The downside, however, is that even at the seriously accelerated pace, a vaccine is unlikely to be available to Americans who come down with the coronavirus during the current outbreak. “Even at that rocket speed, it’s going to take a few months to show that the initial safety is OK – then you go into a phase-2 trial … that will take another 608 months to even know if it works,” Fauci explained. Overall, it’s not likely that testing would be completed for at least a year, potentially longer. “If we cycle to another season, that’s when the vaccine is going to be very relevant,” Fauci added. Fauci noted there were a number of already-developed drugs that were undergoing clinical trials to see if they would help combat the coronavirus – including Gilead Sciences’ Remdesivir & hydroxychloroquine, the latter of which has been approved for decades to treat malaria. Longer term, the goal is to develop a universal coronavirus vaccine that could fight against future iterations of the virus.
Fauci: Vaccine moving at 'rocket speed'
Walmart (WMT), a Dow stock & Dividend Aristocrat, announced last night that it plans to provide all associates in the US with a special cash bonus for their hard work & dedication during the coronavirus. “Walmart associates have gone above and beyond the call of duty in serving our customers during these unprecedented times,” said CEO Doug McMillon. “We want to reward our associates for their hard work and recognize them for the work that is in front of us.” The bonus will be $300 for full-time hourly associates & $150 for part-time hourly associates & will add up to more than $365M. Every hourly associate employed by the company as of Mar 1 will qualify & it will pay out on Apr 2. In addition to the special cash bonus, the company will accelerate the next scheduled quarterly bonus for store, club & supply chain associates a month early. The early payout will add up to $180M. Overall, the bonuses will put nearly $550M into associates' pockets who, according to a 2019 Environmental & Social Governance report, earn an average wage of $14.26 per hour. Hourly Q4 bonuses were paid this week, meaning hourly associates will receive bonus payments on Mar 19, Apr 2, Apr 30 & May 28. WMT also said it will hire 150K new associates through the end of May to work in stores, clubs, distribution centers & fulfillment centers. The stock dropped 5.48 to 114 (but still near recent record highs).
If you would like to learn more about WMT, click on this link:
club.ino.com/trend/analysis/stock/WMT?a_aid=CD3289&a_bid=6ae5b6f7
Walmart offering cash perk to employees — and will hire 150K more
The Federal Reserve will extend its asset purchase program into short-term municipal bonds. Thus far, the central bank has limited its efforts to Treasuryie & mortgage-backed securities in an effort to keep liquidity flowing through the system & to stabilize credit markets. However, continued disruption in the markets for state & local gov debt promoted the Fed to take further action in its efforts to combat coronavirus effects. The market for munis this week has all but collapsed, with few willing to step in & buy the gov debt in the uncertainty of the current climate. The Fed said the move is “to enhance the liquidity and functioning of crucial state and municipal money markets.” The program will work thru the Money Market Mutual Fund Liquidity Facility announced earlier this week & offers an expansion of what had been a financial crisis-era program authorizing purchases of other assets. Expanding into munis is something that did not happen during the crisis. The Boston Fed will lend to eligible banks & other financial institutions that will be able to use single-state & other tax-exempt munis as collateral. Maturities can't exceed 12 months. The S&P Municipal Yield price index has tumbled 7.1% over the past week & was off 4.2% in the day before the Fed made the announcement. The Fed had previously announced a $700B asset purchase regime involving $500B in Treasuries & the remainder in MBS.
The Federal Reserve is expanding its asset purchases to include municipal bonds
In early trading the Dow made an attempt to rise, but pulled back to around breakeven. Then heavy selling hit in the last 2 hours. It closed close to the lows, near a measly 19K, down more than 10K from the records reached a month ago. While the short term outlook is dismal, the news about companies taking action to help get the US economy under control is encouraging. Oil is not getting much attention, but that is a huge negative story. Better news on the virus front will be needed to attract buyers. Try to have a restful weekend.
Dow Jones Industrials
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