Coronavirus in new york, Governor Andrew Cuomo saying there have been 481 deaths in the last 24 hours, holding below 500. Also some stabilization to hospitalizations. They are once again basically flat. We had about 1800 yesterday. Governor cuomo saying the curve is on the way down, but at the same time, we need to keep ourselves very vigilant. About 1300 people hospitalized with coronavirus yesterday. Hospitalizations basically flat. Overall virus deaths in new york , now 14,828. Meantime, the markets are registering losses today as well. The s p 500 down 2. 7 right now. Energy companies not doing so well. Neither our travel Companies Like expedia. Crude oil is in a category of its own right now. 3. 31 is what the current months contract is trading at. The dollar index might be more interesting to look at in some sense, at 100. 18. Some strengthening, including the hong kong dollar, which had to defend its peg because it reached the upper bound today. Above 47. The vix bpi ont months
Reports out of earnings. Some ceos talking about china being slow to recover, for example. Seeing the pace picked up at a very slow rate. We also have the Economic Data this morning, personal spending down 7. 5 in the united states. Compoundingdp data yesterday. That said, the 10 year yield us to let 60 basis points the fed and the ecb are doing all they could possibly do to keep the Financial Markets working. To point out. Ocks tesla up 4. 3 , just one exhibit 11 Earnings Report investors were cheered by, even though there are plenty of challenges facing tesla ahead. Twitter reported advertising revenue down about 1 4, and even though monthly and daily subscribers are up, the advertising revenue is very concerning to investors. That stock down more than 5 . Lets talk more about the ecb. The central bank is absently front and center. The data out of the euro zone today, 3. 8 in the First Quarter, the fastest contraction we have ever seen. The ecb now seeing a series of longterm loans f
Longer than what was initially anticipated. A long slog. You see stocks down 1. 3 . The small caps doing so well up six days in a row, now down 3. 2 . Crude oil is higher. A little bit of a relief rally from the brutal selling we had an oil for two weeks. Confirming the risk off tone, a rally for bonds. Investors taking chips off the table and moving to the sidelines, at least today. David a mildly risk off tone. Despite the abysmal economic numbers, we are down 9 . Are we still higher than we have a right to be . Abigail there is reason to think the markets may go higher. If we look at the rsi on the s p 500, it is nowhere near overbought. From what you would want to see is a set of lower highs. Youre just talking about the s p 500 numbers. It is stunning what we have seen in april. We may be down 9 from the alltime high, but in the month of april the s p 500 on pace for its best month since 1987. Much of this has to do with the big make a cap momentum strength. Around 20 of the index
120 reports are in, but next week is the big week for earnings reports. Yearoveryear Earnings Growth is down 17. 6 right now as we stand. The s p before today was down 13. 4 this year. He did make back some of that ground lost, but we will see what comes our way next week. The 10 year yield has been in its range as well. We have crude limits high for the week, but nevertheless, up and helping to send Oil Companies higher. Down 0. 4 , but still around 17. 25 an ounce. Lets get back to what is happening with italian bond yields and european bonds more broadly. Italian bonds catching a bid today. Are tightening up in germany as well, despite the fact that we have an s p rating review this evening and eu leaders essentially failed to reach a significant conclusion regarding funding, how they are going to fund europes economic recovery, and yesterdays video call. Are we overestimating the risk when it comes to italy and btps . Lets get a sense of where we are at the european economy. Peter
Last roughly 12 years or so. Relative to today, stocks are sharply higher. We have crude oil, another risk asset recovering at 21 a barrel. There are some folks thinking that the demand picture is improving, sending the Energy Sector to the top of the list, and that is also helping small cap up 3 from outperformance. A lot of the Energy Companies are on the smaller topside. Itfor the bonds and the fed, has been about the news of more issuance from the treasury. We have the yield curve again steepening, i think four out of the last five days, rising by about 11 bits this week. The is healthy, that is yield curve normalizing, something that the fed wants to see. If it continues to steepen, it will put volatility to the markets to the downside or the notways chop way, that is happening today. Keep an eye on the yield curve. We have the long end selling off in the two year call carving out a record low. David extraordinary, thank you. 20. 5 million jobs were eliminated in the United States