D&D Note (10.2.2020) ~ President Trump & First Lady Test Positive For Coronavirus Sinking Markets Overnight ~
The big story today was supposed to be the jobs report, until late last night news broke that both the President and First Lady have tested positive for Coronavirus.
Immediately equity futures last night around the world took an elevator down. In the U.S. the futures bounced off the overnight low set after the first Presidential debate around 3300 on the S&P 500.
Now the world must wait 5-7 days to see how bad of symptoms the President has before any certainty can be priced back into the market.
The President is in the very high risk category at age 74 and obese. As of now the White House says he only has mild cold like symptoms.
This afternoon the Presidents doctor has said Trump was treated with Regeneron antibody cocktail and is fatigued but in good spirits.
Joe Biden and Kamala Harris have both tested negative for the virus today.
Markets had been bidding up stocks the last couple days on hopes for a Congress stimulus bill. The 10’s of thousands of corporate layoffs announced this week has led investors to think Congress will be forced to pass a bill. This optimism helped markets to not fall as much as what was possible after the overnight futures route.
Currently there is still around an $8 billion delta between what Democrats in the House have passed and what Republicans in the Senate are willing to pass.
The jobs numbers came out today and disappointed showing that the economic recovery is becoming more shaky. Estimates were for 800,000 jobs gained and the report came in well below at 661,000 jobs gained in September.
Permanent jobs losses rose to 3.75 million in September.
Markets finished off the lows of the day but all major indices ended in the red.
DOW down -0.48%
S&P 500 down -0.96% (3348.44)
NASDAQ down -2.22%
VIX up 3.48% to 27.63
Oil down -4.49% to $36.98 a barrel.
Gold down -0.48% to $1907 an ounce.
HHS Secretary Alex Azar says an effort to achieve herd immunity from Covid-19 “is not the strategy” for the federal government which is contrary to the White House Coronavirus advisor Dr. Scott Atlas (who has zero infectious disease or public health experience) that has been pushing the idea of herd immunity.
Global Virus cases: 34.43 million+
Global Virus deaths: 1.02 million+
U.S. Virus cases: 7.31 million+
U.S. Virus deaths: 208,403+
~ Dave James / Principal Trader and Market Strategist