Dow slid back a modest 36 (200 above early lows), advancers over decliners 5-2 & NAZ went up 117. The MLP index was steady near 106 & the REIT index fluctuated in the 327s. Junk bond funds drifted lower & Treasuries gained favor. Oil fluctuated around 20 in volatile trading & gold rose 13 to 1753.
AMJ (Alerian MLP Index tracking fund)
The number of Americans seeking unemployment benefits jumped by 5.25M last week, as massive jobs losses caused by the coronavirus pandemic continued to mount. That brings total claims over the 4 weeks ended Apr 11 to nearly 22M workers, erasing the entirety of labor market gains since the 2008 financial crisis, a stunning sign of the colossal economic damage inflicted by the virus outbreak. Before the pandemic, the largest number of Americans to seek jobless aid in a 4-week stretch was 2.7M in 1982. With a labor force that totals about 162M, that brings the unemployment rate close to 13%. That exceeds the 10% peak during the worst of the last recession more than a decade ago & tops the previous post-World War II high of 10.8% in 1982, bringing the US closer to depression-era levels of unemployment. Analysts have warned the "Great Lockdown" will push the global economy into the worst recession since the depression in the 1930s. The forecast for the number of initial claims for state unemployment benefitswas hit 5.1M. Last week's initially reported total of 6.6M was revised up slightly by 9K. The report, which provides the most up-to-date evidence on the labor market & the health of the economy, likely reinforces views that the US has already entered a sharp recession, bringing to an end a historically long, 11-year economic expansion. The 4-week moving average was more than 6M, up 2.6M from a week ago.
China, where the coronavirus pandemic started in Dec, is cautiously trying to get back to business, but it's not easy when many Ms of workers are wary of spending much or even going out. Factories & shops nationwide shut down starting in late Jan. Ms of families were told to stay home under unprecedented controls that have been copied by the US, Europe & India. The ruling Communist Party says the outbreak, which had killed more than 3340 among more than 82K confirmed cases, is under control. But the damage to Chinese lives & the economy is lingering. Factories reopened in Mar after Pres Xi Jinping visited Wuhan, the city at the center of the outbreak, in a sign of confidence the virus was under control. But the consumers whose spending propels China's economic growth are still afraid of losing their jobs or catching the virus. They are holding onto their money despite official efforts to lure them back to shopping malls & auto showrooms. Data due out tomorrow is expected to show the economy contracted by up to 9% in Q1, its worst performance since the late 1970s. That is a blow to automakers & other global companies that hope China, after leading the way into a global shutdown, might power a recovery from the most painful slump since the depression of the 1930s. In Europe, the first tentative steps at winding back economically crippling restrictions were also running into resistance, as shoppers stayed away from the few stores that were reopening & some workers feared the newly restored freedoms could put their health at risk. The streets of Rome were largely deserted despite an easing of restrictions this week that allowed some businesses to reopen.
The Small Business Administration’' (SBA) rescue loan program has hit its $349B limit & is now out of money. The Small Business Administration website reads that it is “unable to accept new applications for the Paycheck Protection Program based on available appropriations funding. Similarly, we are unable to enroll new PPP lenders at this time.” The announcement from the SBA comes as scores of small American business owners struggle to deal with the fallout of the coronavirus & the move by some states to shutter the vast majority of commerce. The first-come, first-serve Payroll Protection Program of $349B, approved by Congress & signed by Pres Trump in Mar, had promised to assuage some of the financial burden for the nation's smallest business owners. But the SBA said yesterday that the aid may be nearing a ceiling for loan commitments, with more than 1.3M loans given approval at a value of more than $296B. Yesterday evening, $315B had been approved, according to a person familiar with the situation. But lawmakers appear close to bolstering the exhausting program with additional funds. Staffers for Senate Minority Leader Chuck Schumer & House Speaker Nancy Pelosi are expected to continue talks with the Treasury Dept, a senior Dem said. Those discussions will follow a similar one yetersday as the nation’s top Dem & Reps seek to hash out the new funding just a few weeks after Congress passed the historic $2.2T CARES Act spending package.
Small business rescue loan program hits $349 billion limit and is now out of money
Gold advanced near its 9 year highs despite the negative news today. However tech stocks are finding friends today & overall selling in the stock market has not been too bad. Consumer resistance in China & Europe after restrictions were limited is not encouraging for the US economy. Let's see what trading in the PM brings.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 19.78 | -0.09 | -0.5% |
| GC=F | Gold | 1,759.20 | +19.00 | +1.1% |
The number of Americans seeking unemployment benefits jumped by 5.25M last week, as massive jobs losses caused by the coronavirus pandemic continued to mount. That brings total claims over the 4 weeks ended Apr 11 to nearly 22M workers, erasing the entirety of labor market gains since the 2008 financial crisis, a stunning sign of the colossal economic damage inflicted by the virus outbreak. Before the pandemic, the largest number of Americans to seek jobless aid in a 4-week stretch was 2.7M in 1982. With a labor force that totals about 162M, that brings the unemployment rate close to 13%. That exceeds the 10% peak during the worst of the last recession more than a decade ago & tops the previous post-World War II high of 10.8% in 1982, bringing the US closer to depression-era levels of unemployment. Analysts have warned the "Great Lockdown" will push the global economy into the worst recession since the depression in the 1930s. The forecast for the number of initial claims for state unemployment benefitswas hit 5.1M. Last week's initially reported total of 6.6M was revised up slightly by 9K. The report, which provides the most up-to-date evidence on the labor market & the health of the economy, likely reinforces views that the US has already entered a sharp recession, bringing to an end a historically long, 11-year economic expansion. The 4-week moving average was more than 6M, up 2.6M from a week ago.
Labor market gains since '08 wiped out as millions of job losses pile up
China, where the coronavirus pandemic started in Dec, is cautiously trying to get back to business, but it's not easy when many Ms of workers are wary of spending much or even going out. Factories & shops nationwide shut down starting in late Jan. Ms of families were told to stay home under unprecedented controls that have been copied by the US, Europe & India. The ruling Communist Party says the outbreak, which had killed more than 3340 among more than 82K confirmed cases, is under control. But the damage to Chinese lives & the economy is lingering. Factories reopened in Mar after Pres Xi Jinping visited Wuhan, the city at the center of the outbreak, in a sign of confidence the virus was under control. But the consumers whose spending propels China's economic growth are still afraid of losing their jobs or catching the virus. They are holding onto their money despite official efforts to lure them back to shopping malls & auto showrooms. Data due out tomorrow is expected to show the economy contracted by up to 9% in Q1, its worst performance since the late 1970s. That is a blow to automakers & other global companies that hope China, after leading the way into a global shutdown, might power a recovery from the most painful slump since the depression of the 1930s. In Europe, the first tentative steps at winding back economically crippling restrictions were also running into resistance, as shoppers stayed away from the few stores that were reopening & some workers feared the newly restored freedoms could put their health at risk. The streets of Rome were largely deserted despite an easing of restrictions this week that allowed some businesses to reopen.
China tries to reopen, but hits snags
The Small Business Administration’' (SBA) rescue loan program has hit its $349B limit & is now out of money. The Small Business Administration website reads that it is “unable to accept new applications for the Paycheck Protection Program based on available appropriations funding. Similarly, we are unable to enroll new PPP lenders at this time.” The announcement from the SBA comes as scores of small American business owners struggle to deal with the fallout of the coronavirus & the move by some states to shutter the vast majority of commerce. The first-come, first-serve Payroll Protection Program of $349B, approved by Congress & signed by Pres Trump in Mar, had promised to assuage some of the financial burden for the nation's smallest business owners. But the SBA said yesterday that the aid may be nearing a ceiling for loan commitments, with more than 1.3M loans given approval at a value of more than $296B. Yesterday evening, $315B had been approved, according to a person familiar with the situation. But lawmakers appear close to bolstering the exhausting program with additional funds. Staffers for Senate Minority Leader Chuck Schumer & House Speaker Nancy Pelosi are expected to continue talks with the Treasury Dept, a senior Dem said. Those discussions will follow a similar one yetersday as the nation’s top Dem & Reps seek to hash out the new funding just a few weeks after Congress passed the historic $2.2T CARES Act spending package.
Small business rescue loan program hits $349 billion limit and is now out of money
Gold advanced near its 9 year highs despite the negative news today. However tech stocks are finding friends today & overall selling in the stock market has not been too bad. Consumer resistance in China & Europe after restrictions were limited is not encouraging for the US economy. Let's see what trading in the PM brings.
Dow Jones Industrials
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