Dow jumped up 415, advancers over decliner better than 3-1 & NAZ advanced 188. The MLP index added 2+ to the 115s & the REIT index gained 6 to 323. Junk bond funds rose in price & Treasuries were sold, bringing higher yields. Oil shot up 3 to the a still very depressed 14+ & gold soared 40 to 1728 on thoughts of higher gov deficits.
AMJ (Alerian MLP Index tracking fund)
Oil prices spiked after Pres Trump threatened action against Iranian gunboats that have been harassing US ships. West Texas Intermediate (WTI) crude oil, the US benchmark, gained 32% to $15.29 a barrel after having fallen to an overnight low of $10.26. WTI was trading at $11.37 ahead of the tweet. Brent crude, the intl benchmark, was higher by 11% at $21.49. “I have instructed the United States Navy to shoot down and destroy any and all Iranian gunboats if they harass our ships at sea,” Trump tweeted. Trump's statement comes after 11 Iranian vessels last week operated dangerously close to US ships in the Persian Gulf. Earlier on today, Iran said it launched its first military satellite into orbit. The rebound amid rising geopolitical tensions comes after WTI crude oil for Jun delivery plunged 60% this week amid worries about demand destruction caused by COVID-19 & ballooning supplies due to the price war between Russia & Saudi Arabia. While Trump's comments have provided a short-term lift, they're unlikely to keep prices elevated.
Pres Trump claimed in a tweet that some US states are beginning to "safely" reopen their economies after implementing strict stay-at-home measures to mitigate the spread of the novel coronavirus. "States are safely coming back. Our Country is starting to OPEN FOR BUSINESS again," Trump tweeted. "Special care is, and always will be, given to our beloved seniors (except me!). Their lives will be better than ever...WE LOVE YOU ALL!" Restaurants, bars, hotels, gyms, beauty salons, entertainment venues & other businesses deemed nonessential have been ordered to close throughout the country, with more than 40 states enacting stay-at-home policies in Mar, bringing American life to a grinding halt. The result has been an economic free fall that experts caution could rival the Great Depression. In the 4-week period thru Apr11, 22M Americans filed for unemployment benefits, a stunning sign of the depth of the pain inflicted by the virus outbreak. Economists are increasingly warning of a severe contraction in tQ2, with some estimates ranging as high as 38%. But with some signs the virus has started to plateau in New York, the American epicenter, & a lower-than-projected death toll. Trump last week unveiled a guide on how states could proceed with reopening their economies, ultimately leaving it up to governors to make the decisions on timing & breadth. Several key measures that Trump said should be met include a downward trajectory in confirmed cases of COVID-19, the respiratory illness caused by the virus, over a 14-day period. Public health officials have warned that reopening too early could trigger a resurgence in cases & deaths from the virus.
A $483B coronavirus aid package flew through the Senate after Congress & the White House reached a deal to replenish a small business payroll fund & provided new money for hospitals & testing. Passage was swift & unanimous, despite opposition from conservative Reps. Pres Trump tweeted his support, pledging to sign it into law. It now goes to the House, with votes set for tomorrow. After nearly 2 weeks of negotiations & deadlock, Congress & the White House reached an agreement on the nearly $500B package, the 4th as DC strains to respond to the health & economic crisis. “The Senate is continuing to stand by the American people,” said Senate Majority Leader Mitch McConnell to an almost empty chamber. Senate Minority Leader Chuck Schumer said the bill was made “better and broader” after Dems forced the inclusion of money for hospitals & testing. Most of the funding, $331M, would go to boost a small business payroll loan program that ran out of money last week. An additional $75B would be given to hospitals, & $25B would be spent to boost testing for the virus, a key step in building the confidence required to reopen state economies. Missing from the package, however, was extra funding for state & local govs staring down budget holes & desperate to avert furloughs & layoffs of workers needed to keep cities running. Trump said he was open to including in a subsequent virus aid package fiscal relief for state & local gov — which Dems wanted for the current bill — along with infrastructure projects.
Stocks went up about 2%, in what has become a common daily move in the last 2 months, after the senate passed the bill with more help for small small & there was a rebound in oil prices. Tomorrow the House is expected to pass the bill & then Trump will sign it. The bear market for oil prices will continue, but the record low prices are attracting speculators & oil people who are interested in seeing how they can profit from these historic low prices.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 14.08 | +2.51 | +21.7% |
| GC=F | Gold | 1,729.30 | +41.50 | +2.5% |
Oil prices spiked after Pres Trump threatened action against Iranian gunboats that have been harassing US ships. West Texas Intermediate (WTI) crude oil, the US benchmark, gained 32% to $15.29 a barrel after having fallen to an overnight low of $10.26. WTI was trading at $11.37 ahead of the tweet. Brent crude, the intl benchmark, was higher by 11% at $21.49. “I have instructed the United States Navy to shoot down and destroy any and all Iranian gunboats if they harass our ships at sea,” Trump tweeted. Trump's statement comes after 11 Iranian vessels last week operated dangerously close to US ships in the Persian Gulf. Earlier on today, Iran said it launched its first military satellite into orbit. The rebound amid rising geopolitical tensions comes after WTI crude oil for Jun delivery plunged 60% this week amid worries about demand destruction caused by COVID-19 & ballooning supplies due to the price war between Russia & Saudi Arabia. While Trump's comments have provided a short-term lift, they're unlikely to keep prices elevated.
Oil reacts after Trump threatens to 'destroy' Iranian gunboats
Pres Trump claimed in a tweet that some US states are beginning to "safely" reopen their economies after implementing strict stay-at-home measures to mitigate the spread of the novel coronavirus. "States are safely coming back. Our Country is starting to OPEN FOR BUSINESS again," Trump tweeted. "Special care is, and always will be, given to our beloved seniors (except me!). Their lives will be better than ever...WE LOVE YOU ALL!" Restaurants, bars, hotels, gyms, beauty salons, entertainment venues & other businesses deemed nonessential have been ordered to close throughout the country, with more than 40 states enacting stay-at-home policies in Mar, bringing American life to a grinding halt. The result has been an economic free fall that experts caution could rival the Great Depression. In the 4-week period thru Apr11, 22M Americans filed for unemployment benefits, a stunning sign of the depth of the pain inflicted by the virus outbreak. Economists are increasingly warning of a severe contraction in tQ2, with some estimates ranging as high as 38%. But with some signs the virus has started to plateau in New York, the American epicenter, & a lower-than-projected death toll. Trump last week unveiled a guide on how states could proceed with reopening their economies, ultimately leaving it up to governors to make the decisions on timing & breadth. Several key measures that Trump said should be met include a downward trajectory in confirmed cases of COVID-19, the respiratory illness caused by the virus, over a 14-day period. Public health officials have warned that reopening too early could trigger a resurgence in cases & deaths from the virus.
Trump: States are restarting economies, seniors getting 'special care'
A $483B coronavirus aid package flew through the Senate after Congress & the White House reached a deal to replenish a small business payroll fund & provided new money for hospitals & testing. Passage was swift & unanimous, despite opposition from conservative Reps. Pres Trump tweeted his support, pledging to sign it into law. It now goes to the House, with votes set for tomorrow. After nearly 2 weeks of negotiations & deadlock, Congress & the White House reached an agreement on the nearly $500B package, the 4th as DC strains to respond to the health & economic crisis. “The Senate is continuing to stand by the American people,” said Senate Majority Leader Mitch McConnell to an almost empty chamber. Senate Minority Leader Chuck Schumer said the bill was made “better and broader” after Dems forced the inclusion of money for hospitals & testing. Most of the funding, $331M, would go to boost a small business payroll loan program that ran out of money last week. An additional $75B would be given to hospitals, & $25B would be spent to boost testing for the virus, a key step in building the confidence required to reopen state economies. Missing from the package, however, was extra funding for state & local govs staring down budget holes & desperate to avert furloughs & layoffs of workers needed to keep cities running. Trump said he was open to including in a subsequent virus aid package fiscal relief for state & local gov — which Dems wanted for the current bill — along with infrastructure projects.
Senate OKs $483B virus stimulus, sends to House: Where relief will go
Stocks went up about 2%, in what has become a common daily move in the last 2 months, after the senate passed the bill with more help for small small & there was a rebound in oil prices. Tomorrow the House is expected to pass the bill & then Trump will sign it. The bear market for oil prices will continue, but the record low prices are attracting speculators & oil people who are interested in seeing how they can profit from these historic low prices.
Dow Jones Industrials
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