Succinct Summations for the Week 3.27.20 (plus Returns From the Bottoms of Bear Markets)

Below is the weekly Sunday night summation, the main positive being the $2T stimulus and, until shortly before close on Friday, a market rally.  The big negatives are that we now lead the world in COVID-19 infections, we have a massive shortage of medical gear, and jobless claims went from under 300,000 to over 3 million in one week.  The bonus this Sunday night is a very telling chart detailing every single market downturn since 1929, how bad each one was and how long it took to recover.  Quite revealing.  Everyone please stay well. 

Succinct Summations for the Week 3.27.20

March 27, 2020 4:30pm by Barry Ritholtz

Succinct Summations for the week ending March 27th, 2020

Positives:

1. We have a $2 trillion stimulus plan deal; markets rally;
2. Corporate profits rose 4.1% y/o/y, above previous measures.
3. Durable goods orders rose 1.2% m/o/m, above expectations;
4. New home sales came in at 765k for February above expectations;
5. Personal income rose 0.6% m/o/m, above expectations;
6. International trade gap narrowed to $-59.9B in Feb.

Negatives:

1. US now leads the world in Covid-19 infections; Still no war powers act, despite massive shortage of protective medical gear and ventilators. THS IS VERY BAD
2. Jobless claims increased by nearly 3m w/o/w from 282k to 3.3M.
3. FHFA House Price Index rose 0.3% m/o/m, below previous levels;
4. Home mortgage apps fell 15.0% w/o/w, below last month;
5. Wholesale inventories fell 0.5% m/o/m, below last month;
6. Retail inventories fell 0.3% m/o/m, below expectations;
7. Consumer sentiment is at 89.1 for March, below expectations;

RETURNS FROM THE BOTTOMS OF BEAR MARKETS