D&D Note (10.6.2020) ~ Markets Tank After President Calls Off Stimulus Talks Until Post Election Despite FED Chairman Calling For Congressional Stimulus ~ #StockMarket

D&D Note (10.6.2020) ~ Markets Tank After President Calls Off Stimulus Talks Until Post Election Despite FED Chairman Calling For Congressional Stimulus ~

Stocks traded choppy in cash trading today from gains to losses throughout the session weighing all the current risks. The Presidents health is still in focus but the main driver is Congressional Stimulus.

Dr. Sean Conley says the President has no symptoms after first night back to the White House.

In afternoon trading the major indices turned green as hopes that a deal would get struck between Democrats and Republicans.

FED Chairman Jerome Powell calls for Congress to pass the stimulus bill siting “the risks of overdoing it seem, for now, to be smaller.”

The two sides of the aisle are still fighting over the additional $600 in unemployment benefits.

In the final hour of trading the President said he is stopping talks on stimulus until after the election, and perhaps alluding to no stimulus if he doesn’t win.

Nancy Pelosi says Trump is putting himself before the nation by rejecting urgent warnings from FED Powell on aid. She continued to say that the White House is ‘clearly’ in complete disarray.

This also calls into question is the President overmedicated and not thinking soundly?

The President’s tweet instantly tanked the markets with the major indices all falling from gains to losses of over 1%.

Gold also fell over 1% on the stimulus news as the metal was getting bid up on inflation concerns from a stimulus deal.

Bond yields fell giving back yesterdays gains.

Airlines where heavily hit today as they are facing massive layoffs with no fiscal aid.

Joe Biden holds steady lead in six swing states:

• Arizona: Biden 51%, Trump 45%
• Florida: Biden 50%, Tump 46%
• Michigan: Biden 51%, Trump 43%
• North Carolina: Biden 49%, Trump 47%
• Pennsylvania: Biden 50%, Trump 46%
• Wisconsin: Biden 51%, Trump 44%

Hurricane Delta is now a category 3 and could potentially become category 4 as it gets closer to the U.S. Gulf coast.

Apple announces Oct 13 event that is expected to be the unveiling of their new 5G iPhones.

Boeing slashes their 10-year forecast for new aircraft demand by 11% and the stock fell over 6% today. The company says the Coronavirus pandemic will hurt sales for more than a decade.

Markets essentially gave back all of yesterdays rally closing near the lows of the day. The only stock in D&D’s portfolio to finish in the green was our Indian holding WNS.

DOW down -1.34%

S&P 500 down -1.40% (3360.97)

NASDAQ down -1.57%

VIX up 5.44% to 29.48

Oil up 2.37% to $40.15 a barrel.

Gold down -1.48% to $1891.60 an ounce.

Facebook and Twitter took action on the President’s false claim today that the seasonal flu is more deadly than Covid-19. Facebook removed the post and Twitter hid the message behind a label warning of misinformation.

House oversight panel investigating political meddling at both the CDC and the FDA.

Sadly Eddie Van Halen died today at age 65 after battling throat cancer.

Global Virus cases: 35.63 million+

Global Virus deaths: 1.04 million+

U.S. Virus cases: 7.48 million+

U.S. Virus deaths: 210,616+

~ Dave James / Principal Trader and Market Strategist