D&D Note (5.21.2020) ~ Markets Trade Down On Unemployment Data Along With US/China Tensions ~
Stocks in the U.S. began the day in the green then fell into the red on unemployment data showing another 2.4 million Americans filed for unemployment. In the past nine weeks there have been 38 million Americans filing jobless claims.
Senate Majority Leader Mitch McConnell said the next relief bill will not extend enhanced unemployment benefits. The additional $600 per week will expire at the end of July.
Indices moved off the lows of the day through the afternoon trading session. In the last hour all major Indices moved back towards lows when Senators offered up a bill sanctioning China over Hong Kong.
The rhetoric between China and the United States has certainly been ratcheting up this week including the possibility of delisting Chinese stocks if they don’t meet specific financial guidelines.
D&D closed out our Chinese holdings today in Tencent and Alibaba taking our gains and de-risking until more clarity is present.
DOW down -0.41%
S&P 500 down -0.78% (2948.51)
NASDAQ down -0.97%
VIX up 3.89% to 29.09
Oil up 1.70% to $34.06 a barrel, now up 6 days in a row and seeing a smooth rollover of monthly contract.
Global Coronavirus cases passed the 5 million mark early today representing a doubling in cases over the past month.
Governor Cuomo has instructed New York public schools should begin preparing to reopen in September, however it’s still too early to know for sure yet. Those plans will be approved in July once more data comes in.
Due to the Pandemic, Amazon has decided to delay Prime Day sale until September.
Morgan Stanley biotech analyst Matthew Harrison says, “We’ve talked about spring to summer of 2021 as when we would expect to see the vast majority of the U.S. population vaccinated.”
The companies he is watching for the vaccine are; Moderna, Johnson&Johnson, AstraZenecca, CanSino, and GSK-Sanofi.
Global Virus cases: 5 million+
Global Virus deaths: 328,471+
US Virus cases: 1.5 million+
US Virus deaths: 93,439+
~ Dave James / Principal Trader and Market Strategist