We welcome all of you today. A most interesting day. Chairman powell to speak later on. He managed the message yesterday to say the least. I am thrilled to tell you, particularly those hammered by whiplash, a quiet data check this morning. , nottle lift in the market question. The vix with a 33 level, much better than the agony of thursday and friday out at a 44 level. Coming in sprightly and maybe take a pause. Lets view the Economic Data within the data check, which was a shock of the unemployment report, and then the huge shock yesterday of the nice rebound in retail sales. We had good conversations on that as well. Within that is what yield does. All in all i would say yesterday was remarkably quiet versus the gyration of the equity market. There is substantial news this morning. Lets go to our first word news. Here is ritika gupta. Jerome powell is sticking to his message that there will be an uncertain path to u. S. Recovery. He has the second day of Video Conference testimony be
Way to the indian border. Theres tangible issues. No question they are flexing their muscle right now. What i would notice in this market on a quiet wednesday, i know you will do the data check here. Publishing moments ago this bullish consumer view, and that was a game changer yesterday with the retail sales report. Jonathan we will catch up on the geopolitics a little later in the hour. Equity futures up 19 on the s p 500, focusing a move higher over the last several weeks, up by 0. 6 . Just surprise after positive surprise. The economic surprise index in the United States is absolutely flying. And it is at a record high searching higher after yesterdays retail sales beat. It was just an absolute trout. Today absolute trounce. Today i am going to be watching the u. S. May building and housing permits starts to get a taste of what we may expect. U. S. Loan purchase applications hit an 11 year high last week, so that should be some sort of indicator. 12 00 p. M. , fed chair jay powellc
Edward tom good morning. Wfh, as the jargon now, you work from home. When do we all get back to the office . We thank you for watching. A really interesting wednesday. There are a lot of political moments, theres international relations. In the market, im sorry. I started out this morning with on, and all much going now a bid to equities once more. Jonathan you the word crosscurrents. I think that is the right word this week. We have betterthanexpected data in the United States. I think the data right now is absolutely critical. The Federal Reserve has played a huge role in this market, and clearly that is exacerbating this, but the veracity comes from the betterthanexpected data. You have to say that this rally tracks that pretty well so far. Tom lisa abramowicz, what have you learned about the efficacious nature of fed policy . Is it helping right now . Lisa it is helping to push down yields and push up prices of assets across the board, and certainly hoping to encourage companies to
Guy is introducing his wynndicator we start off with another record close by the nasdaq led by big tech, apple, microsoft, amazon, facebook all hitting record highs today. The five Biggest Companies in the s p 500 account for nearly a quarter of the indexs total market capitalization. How long can the leadership of these names last if you look at the nasdaq 100 has outperformed the s p by 28 year to date but by 13 since those march 18th low amazon and maybe facebook were somewhat defensive here for real reasons related to the core business but some of the others have been defensive because of the size of the business and these are companies that you know are going to be tomorrow. Thats really the story. It is important that pmis around the world over the last 24 hours were quite good. You actually had a major recovery across europe i think people are starting to see data points that matter. All that really matters is the fed reserve. Based on 2022, you can start to get a normalized pro
Lots of interesting things going on today, but the number one thing without question is a deteriorating take in the last hour, and what is front and center in the United States is a reaffirmation of the first wave of the pandemic. Other issues on the virus worldwide, including in india, for example. Bombay shifting to really grim news out of delhi, a flareup in tokyo as well. Isthe United States, there no other topic than this pandemic. Jonathan totally agree. Claims 30 minutes away as well. We face elevated long unemployment. What we need is a clean reopening so we can bounce back quickly, and hopefully the temporary job losses dont become permanent. From an economics perspective, that is why the pandemic and the fragile data in states like texas is so worrying. Reopeningins the process. If it reverses it, worst case an area, we face a lot of pain for a lot of people. Tom i am going to suggest you put separately the pandemic and claims. I would like them quite closely together, in tha