Dow fell 127 in very choppy trading, advancers over decliners 5-4 & NAZ rose 85. The MLP index jumped up 8 to 80 & the REIT index inched up 1 to 278. Junk bond funds saw some buying from their depressed levels with extraordinarily high yields & Treasuries were purchased, bringing lower yields on the 10 year Treasury. Oil recovered 2+ to 23 & gold crawled up 7 to 1485.
AMJ (Alerian MLP Index tracking fund)
Treasury Secretary Steve Mnuchin said the White House is working to send $1000 checks to most adult Americans within 3 weeks to offset the coronavirus pandemic, which has forced life in the U.S. to come to a grinding halt. "We're going to get out of this quickly," Mnuchin said. The checks are part of a broader $1T plan introduced by the White House earlier this week. It includes $300B for small businesses to hire people & keep workers on the payroll; $200B for more facilities with the Federal Reserve for secured lending to hard-hit industries like airlines; & $500B in money "direct deposited" for most Americans. Adults would receive an immediate payment of $1000 & children would receive $500 under the current proposal. A family of 4 would receive as much as $3000. If the crisis is still ongoing in 6 weeks, Mnuchin said, the federal gov will deliver another round of checks worth the same amount of money. "That's a lot of money to hard-working Americans who are at home," Mnuchin added. It's unclear what the income threshold will be for Americans to qualify for the checks. However, according to reports, Senate Reps are considering making the limit $75K for individuals & $150K for couples. “I think it’s clear we don’t need to send people who make a million dollars a year checks,” Mnuchin said earlier this week. So far, the White House & Congress have passed 2 stimulus packages, including $8.3B in funding for prevention efforts & research, & a bill that extends paid sick leave to most Americans and provides free testing for COVID-19, the disease caused by the novel coronavirus. Americans have never received genuinely unrestricted cash before. The White House sent checks to Americans in 2001 & 2008 to address recessions at the time, but they were considered rebates to taxpayers.
Jobless claims surged more-than-expected for the last week, the Labor Dept reported. The number of Americans filing applications for jobless benefits jumped to 281K, far higher than the 220,K forecast. It was the highest number since Jun 2017. "A number of states specifically cited COVID-19 related layoffs, while many states reported increased layoffs in service-related industries broadly and in the accommodation and food services industries specifically," the Labor Dept said. Companies are just starting to announce coronavirus-related layoffs, so the number is expected to skyrocket next week as much of the economy shuts down to combat the pandemic. While it's still unclear how sharp a coronavirus-induced downturn would be in the US, social distancing, which has led to school cancellations, mandatory work-from-home policies, grounded airplanes, anchored cruise ships & the abrupt closing of shops, restaurants & bars throughout the country, is almost guaranteed to cause a huge slump in consumer spending, which powers about 2/3 of the country's GDP, indicating it could cause deep economic pain.
The Federal Reserve will be buying $75B in Treasuries today & tomorrow as the central bank continues its efforts to keep markets flowing smoothly amid the coronavirus crisis. In the latest in a frenzied series of developments, the New York Fed laid out a schedule for buying it will undertake across a series of maturities. In all, the purchases will total $75B, an acceleration from the $40B total the Fed had originally set when it announced its latest operations to expand its balance sheet. In a separate announcement, the New York Fed said it would conduct an additional $10B of purchases in the mortgage-backed securities space “to address highly unusual disruptions in the market” that are “associated with the coronavirus outbreak.”
The Fed will be buying $75 billion in Treasurys today and Friday as part of stimulus effort
The central banks are throwing money at the financial problems by buying gov debt. Meanwhile, Ford (F) dropped the div & suspended forward guidance. The Dow already has a range of 800 today. The bulls are hoping bargain hunters can take it over 20K. Even if successful, it may not mean much with such much uncertainty about everything.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 23.05 | +2.68 | +13.2% |
| GC=F | Gold | 1,489.90 | +12.00 | +0.8% |
Treasury Secretary Steve Mnuchin said the White House is working to send $1000 checks to most adult Americans within 3 weeks to offset the coronavirus pandemic, which has forced life in the U.S. to come to a grinding halt. "We're going to get out of this quickly," Mnuchin said. The checks are part of a broader $1T plan introduced by the White House earlier this week. It includes $300B for small businesses to hire people & keep workers on the payroll; $200B for more facilities with the Federal Reserve for secured lending to hard-hit industries like airlines; & $500B in money "direct deposited" for most Americans. Adults would receive an immediate payment of $1000 & children would receive $500 under the current proposal. A family of 4 would receive as much as $3000. If the crisis is still ongoing in 6 weeks, Mnuchin said, the federal gov will deliver another round of checks worth the same amount of money. "That's a lot of money to hard-working Americans who are at home," Mnuchin added. It's unclear what the income threshold will be for Americans to qualify for the checks. However, according to reports, Senate Reps are considering making the limit $75K for individuals & $150K for couples. “I think it’s clear we don’t need to send people who make a million dollars a year checks,” Mnuchin said earlier this week. So far, the White House & Congress have passed 2 stimulus packages, including $8.3B in funding for prevention efforts & research, & a bill that extends paid sick leave to most Americans and provides free testing for COVID-19, the disease caused by the novel coronavirus. Americans have never received genuinely unrestricted cash before. The White House sent checks to Americans in 2001 & 2008 to address recessions at the time, but they were considered rebates to taxpayers.
Mnuchin: White House will send most Americans cash within weeks
Jobless claims surged more-than-expected for the last week, the Labor Dept reported. The number of Americans filing applications for jobless benefits jumped to 281K, far higher than the 220,K forecast. It was the highest number since Jun 2017. "A number of states specifically cited COVID-19 related layoffs, while many states reported increased layoffs in service-related industries broadly and in the accommodation and food services industries specifically," the Labor Dept said. Companies are just starting to announce coronavirus-related layoffs, so the number is expected to skyrocket next week as much of the economy shuts down to combat the pandemic. While it's still unclear how sharp a coronavirus-induced downturn would be in the US, social distancing, which has led to school cancellations, mandatory work-from-home policies, grounded airplanes, anchored cruise ships & the abrupt closing of shops, restaurants & bars throughout the country, is almost guaranteed to cause a huge slump in consumer spending, which powers about 2/3 of the country's GDP, indicating it could cause deep economic pain.
US weekly jobless claims surge
The Federal Reserve will be buying $75B in Treasuries today & tomorrow as the central bank continues its efforts to keep markets flowing smoothly amid the coronavirus crisis. In the latest in a frenzied series of developments, the New York Fed laid out a schedule for buying it will undertake across a series of maturities. In all, the purchases will total $75B, an acceleration from the $40B total the Fed had originally set when it announced its latest operations to expand its balance sheet. In a separate announcement, the New York Fed said it would conduct an additional $10B of purchases in the mortgage-backed securities space “to address highly unusual disruptions in the market” that are “associated with the coronavirus outbreak.”
The Fed will be buying $75 billion in Treasurys today and Friday as part of stimulus effort
The central banks are throwing money at the financial problems by buying gov debt. Meanwhile, Ford (F) dropped the div & suspended forward guidance. The Dow already has a range of 800 today. The bulls are hoping bargain hunters can take it over 20K. Even if successful, it may not mean much with such much uncertainty about everything.
Dow Jones Industrials
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