Doomsday is not here

Weekly Market Update, 2020-04-20. Despite bad economic data and constant financial news network doomsday talk, the S&P 500 rallied 3% last week.  It closed the week at 2875.  Basically, where it based from January 2018 through Sept 2019.  In doing so, it stretched its one-month gain to 14% and pared its year-to-date loss to 11%.

The tech heavy NASDAQ is actually flat on the year being led by AMZN, NFLX and MSFT.  Hopes of a gradual re-opening of the economy and an early positive anti-viral drug trial from GILD extended the rally.

Down, but no doomsdaydoomsday not here

U.S. equity futures are down 1.3% on concerns about the economic impact of the shutdowns.

The main story overnight is that oil prices have plunged 29% to a 21-year low of around $13 a barrel (WTI). This was a reaction to April oil futures expiration and the view that whatever producing nations can muster in terms of supply cuts won’t be nearly enough to offset the decline in global demand.


In the news…

  • “Democratic leaders and Treasury Secretary Steven Mnuchin said Sunday they were very close to striking a deal on replenishing the small-business aid program whose funding ran out last week,” in this Wall Street Journal article.
  • “Oil in New York Plunges Below $15 as Storage Sites Fill,” says Bloomberg here.
  • “Americans Fear Lifting Coronavirus Restrictions Too Soon, WSJ/NBC Poll Says: Nearly 60% of respondents worry that lifting stay-at-home orders quickly will fuel the pandemic,” says this Wall Street Journal article.

And from Oak Harvest Financial Group:

  • Check out these helpful podcasts by Chris Perras, CFA®, here.

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