4/20/20 Market Notes
The markets finished higher last week as historic declines in economic data were overshadowed by optimism on the possibility of the reopening of the economy. Large cap US equities posted gains for the second week in a row, with the Dow up 2.2%, the S&P 500 up 3%, and the NASDAQ up 6%. US equity futures are slightly lower this morning after oil’s 34% overnight plunge as supplies continue to massively exceed demand. The markets this week will be watching Washington for progress on another $500M of economic stimulus that could include additional funding for the tapped-out paycheck protection program, corona virus testing, and relief for hospitals. Earnings season also remains in focus with Coca Cola, Netflix, and IBM among the companies reporting this week. Investors continue to focus on the reopening of economies as it appears clear that infections have peaked in the hardest hit areas in Europe and the US. The timetable for this reopening remains murky and market volatility is likely to reflect any advances or setbacks. Other economic indicators on the calendar include:
Tuesday: US Existing Home Sales
Wednesday: Crude Inventories
Thursday: US Jobless Claims (4M consensus vs. 5.25M prior week)
Friday: US Durable goods orders (-6% consensus)
Disclosures: This market commentary is written by the 1879 Advisors® and represents the views of 1879 Advisors®. This commentary is not investment advice and should not be used as a basis to make investment decisions. Please consult with your registered investment advisor before making any investment decisions.