Dow went up 46, advancers over decliners 3-2 & NAZ gained 53. The MLP index recovered 3+ to 87 & the REIT index sank 8 to the 307s. Junk bond funds saw limited buying of these high yielding stocks & Treasuries slid lower in price. Oil rose to almost 21 (more below) while gold dropped 21 to 1622.
AMJ (Alerian MLP Index tracking fund)
A measure of US consumer confidence fell sharply in Mar as people grapple with the global coronavirus outbreak. The Conference Board said its consumer confidence index dropped to 120 this month from 132.6 in Feb. However, the print was better than the forecast for 110. “Consumer confidence declined sharply in March due to a deterioration in the short-term outlook,” Lynn Franco, senior director of economic indicators at The Conference Board, said. “The intensification of COVID-19 and extreme volatility in the financial markets have increased uncertainty about the outlook for the economy and jobs. March’s decline in confidence is more in line with a severe contraction – rather than a temporary shock – and further declines are sure to follow.” More than 800K coronavirus cases have been confirmed globally, data from Johns Hopkins University shows. Of those cases, more than 164K are in the US & Italy has over 100K confirmed cases. Countries around the world — including the US — have taken measures to curb the spread of the virus. However, those actions raise concern over a potential economic blow & have sparked massive market volatility.
Consumer confidence tumbles in March as coronavirus cases surge
Oil prices are on track for their worst ever quarter as coronavirus slashes demand
China's manufacturing rebounded in Mar as authorities relaxed anti-disease controls & allowed factories to reopen, an official survey showed, but an industry group warned the economy has yet to fully recover. The ruling Communist Party is trying to revive the world's 2nd-largest economy after declaring victory over the coronavirus even as the US & other govs shut down businesses. The purchasing managers' index issued by the Chinese statistics bureau & the official China Federation of Logistics & Purchasing rose to 52 from Feb's record low of 35.7 on a 100-point scale on which numbers above 50 show activity increasing. The federation & private sector economists cautioned the economy still faces challenges as manufacturers rebuild supply chains & authorities try to prevent a spike in infections as employees stream back to work. The shutdown of China's economy sent out global shockwaves, battering Asian countries that supply its factories with components & raw materials & disrupting shipping, airlines & other industries. Authorities say state-dominated industries such as steel are close to normal production but automakers & other private sector manufacturers say they are operating below normal levels. They say the pace of their recovery depends on how quickly their supply chains can be restored. The latest data “do not indicate that economic activity has fully recovered,” the China Federation of Logistics & Purchasing said. The country needs to “understand the unprecedented severity and complexity of the current domestic and international economic situation” & “return to work and production and expand domestic demand,” the group added.
Following selling at the opening, buyers returned. However all is not well in the stock market. Bulls will have to struggle to extend the recent rally. Mar economic data will be reported in the next few days & that promises to be grim. Worse, GDP forecasts look to be extremely gloomy. Q1 will probably be positive (but not great) because the coronavirus only impacted the last few weeks. Q2 economic data is all but guaranteed to be dreadful. Quibbling about numbers is meaningless. It will be dreadful!! Q3 is iffy. Bs are being thrown at the economy which could bring a modest level of growth. But that represents a very long term forecast & nobody really understands what will happen then. Next month begins tomorrow & that promises to be another extraordinarily wild month for stocks.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 20.69 | +0.60 | +3.0% |
| GC=F | Gold | 1,628.00 | -15.20 | -0.9% |
A measure of US consumer confidence fell sharply in Mar as people grapple with the global coronavirus outbreak. The Conference Board said its consumer confidence index dropped to 120 this month from 132.6 in Feb. However, the print was better than the forecast for 110. “Consumer confidence declined sharply in March due to a deterioration in the short-term outlook,” Lynn Franco, senior director of economic indicators at The Conference Board, said. “The intensification of COVID-19 and extreme volatility in the financial markets have increased uncertainty about the outlook for the economy and jobs. March’s decline in confidence is more in line with a severe contraction – rather than a temporary shock – and further declines are sure to follow.” More than 800K coronavirus cases have been confirmed globally, data from Johns Hopkins University shows. Of those cases, more than 164K are in the US & Italy has over 100K confirmed cases. Countries around the world — including the US — have taken measures to curb the spread of the virus. However, those actions raise concern over a potential economic blow & have sparked massive market volatility.
Consumer confidence tumbles in March as coronavirus cases surge
Oil prices are on pace to register their worst
quarterly performance on record, as the coronavirus pandemic continues
to crush global demand for crude. A public health crisis has meant
countries around the world have effectively had to shut down, with many
govs imposing draconian measures on the daily lives of hundreds
of Ms of people. The
restrictions have created an unprecedented demand shock in energy
markets, ramping up the pressure on companies & govs reliant on
crude sales. To date, more than 787K have contracted
COVID-19 worldwide, with 38K deaths, according to data compiled by
Johns Hopkins University. Intl benchmark Brent crude is trading at $23.36 a barrel, up more than 2.6%, while US West Texas Intermediate (WTI) stood at $21.26, more than 5.8% higher. Brent
futures fell to their lowest level in 18 years yesterday & WTI ended
the previous session below $20, before both benchmarks pared some of
their losses on the final trading day of Q1. To
date, Brent futures have fallen more than 65% thru the first 3
months of 2020, putting the benchmark on track to register its worst
qtr thru history to 1990. Brent is also on pace to record its worst-ever monthly performance, down over 54% in Mar alone. Meanwhile,
WTI futures slumped more than 67% in Q1, putting it on
track for its worst-ever quarterly performance back to when the contract
began trading in 1983. WTI is also down over 55% month-to-date, on pace for its worst-ever monthly performance, too.
Oil prices are on track for their worst ever quarter as coronavirus slashes demand
China's manufacturing rebounded in Mar as authorities relaxed anti-disease controls & allowed factories to reopen, an official survey showed, but an industry group warned the economy has yet to fully recover. The ruling Communist Party is trying to revive the world's 2nd-largest economy after declaring victory over the coronavirus even as the US & other govs shut down businesses. The purchasing managers' index issued by the Chinese statistics bureau & the official China Federation of Logistics & Purchasing rose to 52 from Feb's record low of 35.7 on a 100-point scale on which numbers above 50 show activity increasing. The federation & private sector economists cautioned the economy still faces challenges as manufacturers rebuild supply chains & authorities try to prevent a spike in infections as employees stream back to work. The shutdown of China's economy sent out global shockwaves, battering Asian countries that supply its factories with components & raw materials & disrupting shipping, airlines & other industries. Authorities say state-dominated industries such as steel are close to normal production but automakers & other private sector manufacturers say they are operating below normal levels. They say the pace of their recovery depends on how quickly their supply chains can be restored. The latest data “do not indicate that economic activity has fully recovered,” the China Federation of Logistics & Purchasing said. The country needs to “understand the unprecedented severity and complexity of the current domestic and international economic situation” & “return to work and production and expand domestic demand,” the group added.
China's manufacturing rebounds as coronavirus controls ease
Following selling at the opening, buyers returned. However all is not well in the stock market. Bulls will have to struggle to extend the recent rally. Mar economic data will be reported in the next few days & that promises to be grim. Worse, GDP forecasts look to be extremely gloomy. Q1 will probably be positive (but not great) because the coronavirus only impacted the last few weeks. Q2 economic data is all but guaranteed to be dreadful. Quibbling about numbers is meaningless. It will be dreadful!! Q3 is iffy. Bs are being thrown at the economy which could bring a modest level of growth. But that represents a very long term forecast & nobody really understands what will happen then. Next month begins tomorrow & that promises to be another extraordinarily wild month for stocks.
Dow Jones Industrials
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