A VOLATILE DAY

Equities were volatile Friday as both Arizona and Florida reported their biggest increases in Covd-19 since the pandemic began and Apple said it would close some stores in those states.  Oil gained about 2% as it is now perceived supplies are “rapidly contracting” and demand is recovering “very sharply.”  Treasuries were essentially unchanged.

Some are adamantly stating government must again shutdown the economy to control the spread.  Is this possible given that many of these same individuals are advocating protesting thus perhaps questioning their credibility and moral authority?  Will society see the possible hypocrisy?

As of Friday afternoon, cases were up 1.1% versus the seven-day average of 1.2%.  Will this data change dramatically over the weekend?

According to the World Health Organization there are 14 experimental coronavirus vaccines being tested in humans and more than 120 others in earlier stages of development.  Bloomberg writes Wall Street is expecting some type of vaccine will be available by the commencement of the traditional cold and flu season if not before the end of the summer.

To write the incredibly obvious, Covid is a political issue.

What will happen this week?  The economic calendar is comprised of several housing statistics, inventories, a regional manufacturing index, durable goods orders and a revision in first quarter GDP.  How will the data impact sentiment?

Last night the foreign markets were down.   London was down 0.37%, Paris down 0.59%  and Frankfurt down 0.57%.  China was down 00.8%, Japan down 0.18%  and Hang Sang down 0.54%.

The Dow should open nominally higher even on negative Covid headlines believing government will be unwilling to stop business activity or slow progress toward an economic recovery.   The 10-year is up 3/32 to yield 0.69%.

 

The views expressed herein are those of Kent Engelke and do not necessarily reflect those of Capitol Securities Management. The information contained herein has been compiled from sources believed to be reliable; however, there is no guarantee of its accuracy or completeness. Any opinions expressed are statements of judgment on this date and are subject to certain risks and uncertainties which could cause actual results to differ materially from those currently anticipated or projected. Any future dividends, interest, yields and event dates listed may be subject to change. An investor cannot invest in an index, and its returns are not indicative of the performance of any specific investment. Past performance is not indicative of future results. The material provided in Daily Market Commentaries or on this website should be used for informational purposes only and in no way should be relied upon for financial advice. Please be sure to consult your own financial advisor when making decisions regarding your financial management. Members of FINRA and SIPC, Capitol Securities Management is a privately owned full-service retail brokerage and investment advisory firm headquartered in Richmond, Virginia. For nearly 30 years, we have been serving the needs of our investors. Today, more than 200 Capitol Securities Management investment professionals and support staff serve approximately 18,000 customer accounts from Southern Florida to the New England coast.