Wall Street gets PayPal lift as Nasdaq wipes out 2020 declines

Today the Dow gained almost exactly the amount that was lost yesterday but the companies that have benefited from online shopping due to the pandemic are the ones that propped things up today.  But the real deal is watching the easing of restrictions and seeing what happens.  Will there be a spike in infections and deaths or will things normalize given a continuation of reasonable social distancing precautions?  But as today’s expert says, “The market is looking at this and saying, so far so good.”  If that changes for the better, things will improve quickly.  If it changes for the worse, we may very well find ourselves back at square one.  Friday’s employment report will provide much more clarity, especially on where we may be heading two months from now.  This is the main issue investors are focused on right now.  Volume continues to be relatively relaxed with 10.4 billion shares traded today. 

S&P 500, Dow drop as financial sector declines counter tech gains

The market had a modest sell off today, the Dow being almost even until the final hour, then diving over 200 points; and with tech going up but defensive sectors going down more. Jobs data shows 20 million unemployed in April and Trump issuing threatening statements against our current trade deal with China didn’t help matters at all.  But the real problem as today’s expert points out is this:  “States can declare themselves open all they want.  If people aren’t comfortable going out of their houses, then they’re not going to do anything.  Activity resuming is as important as states declaring themselves open.”  As for the rest of it, the jobs reports that everybody says actually counts is due Friday. Volume continues to relax, today at 9.7 billion. 

Wall Street rises as lockdowns ease, healthcare shares jump

The Dow spent most of the day up over 300 points as healthcare and oil surged with encouraging news on both vaccine and treatment fronts and the hopes that the easing of restrictions would once again boost demand for oil, then dove suddenly in the final hour when the Fed threw a wet blanket on the pandemic outlook.  It really wasn’t unexpected news, just that Q2 was likely to be bad but that a recovery could come as soon as Q3 and Q4.  There was also a report that the services sector had contracted for the first time in over ten years.  Thus the last minute sell off but the good news, as today’s expert put it, “We have certainly gotten some negative data, but for the most part the market has learned to look through that.”  Volume continues to calm down, today at 10.6 billion shares traded. 

Wall Street snaps two-day slump as tech titans give lift

Though the Dow opened over 300 points down this morning, throughout the day it steadily climbed as the oil markets rebounded and gains came from Microsoft, Apple, and Amazon ultimately leading to a very modest 26 point gain, but at least it was the first gain in three sessions.  But the abiding question remains: can we ease restrictions and restart the economy without also blowing up the pandemic?  It is this question on which investors are focused.  But optimism seems to be on the rise as the Q1 earnings forecast has once again been upgraded, this time to be down 12.5% vs last week’s 15.1 percent. Volume also continues to decline, today at 9.5 billion.  Of course in any other environment that would be considered huge but in this panicked environment where volume has been between 15 and 20 billion, it is a sign that the market is continuing to calm down. 

Succinct Summation of Events for Week Ending 5.1.20 (plus Go Big)

Once again, submitted below for your approval is the usual Sunday night weekly summation, the big positive being Andrew Cuomo's outstanding leadership in navigating New York through this pandemic, the main negatives being the lockdown protests and Q1 GDP falling 4.8 percent.  The bonus this week is an abridged version of Barry Ritholtz's 2500 word Business Week essay offering his solution to our economic crisis, a very readable 500 words articulating a concise analysis of past crises and how this one compares.  Hope everyone enjoyed this summery weekend.  And the best news:  Zero deaths in Detroit today! 

Dividend income is a new minefield for financial advisers

With the panic selling that went on yesterday with the threat of a new trade war now adding to the economy's woes, I thought it appropriate to get back to basics and share an article from Monday's Investment News Daily.  I've recently shared two good pieces about dividend stocks.  Is three times the charm?  This one takes the other side of the debate, pointing out potential flaws in the dividend strategy, particularly in the current environment.  Hope everyone's enjoying this very balmy weekend. 

Wall Street tumbles as renewed tariff threat adds to uncertainties

As if we did not already have enough tumult out there, today the ugly head of trade war reared up again when Trump resurrected the notion of new tariffs against China as punishment for what he sees as their culpability in the pandemic, a theory virtually no one else shares.  The market reacted accordingly diving over 2% with the Dow down 622 points and ruining a week that might have otherwise ended in the black.  As today’s expert says, “Trump poking China was the last thing markets needed given so much present economic and financial uncertainty,” especially in view of how the pre-pandemic tariff wars had so brutally roiled the markets during the last couple of years.  The good news is that 275 S&P companies have now reported with 68% beating estimates.  And even though they’re calling today a mixed bag of Q1 reports, today the S&P earnings forecast was once again upgraded, this time to 12.7%  down vs yesterday’s 14.4% and Wednesday’s 15.1 percent.  Volume continued again to fall, today at just under 10.2 billion.