22 Jun 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%.