Equities rose amid a report the Trump Administration supports sending another round of checks.  Markets were also cheered by data suggesting the manufacturing sector is almost expanding and new home sales are considerably stronger than expected.  Oil also gained, trading to the highest level in more than 15 weeks.

Commenting further about oil, trade hopes and demand strength was the accepted catalyst for the advance in crude.  There was no mention of the cruise missile and drone attack from Iranian backed Yemen rebels that targeted the capital and two other Saudi cities.  The attacks were thwarted by Saudi air defenses.  The lack of response to such attacks is evident of the level of complacency surrounding middle eastern politics and violence.  Five years ago prices would surged on the headlines.

Speaking of headlines, the headlines are suggesting Covid cases are exploding.    As expected, confirmed cases will rise with increased testing.  According to the CDC a record 602,000 tests were conducted yesterday.  Hospitalizations are flat to trending down and total hospitalizations are down to the lowest levels in over three months.  I must again write the increase in national cases are flat to nominally down but there are regions where cases are increasing.

Will Covid soon become yesterday’s headlines?  Probably if hospitalizations and deaths—a truer indicator of the disease—does not rise.  Unfortunately, Covid is now a major political issue.

Last night the foreign markets were down.   London was down 2.12%,  Paris down 1.50%  and Frankfurt down 1.80%.  China was up 0.30%,  Japan down 0.07%  and Hang Sang down 0.50%.

The Dow should open nominally lower on a resurgence in virus cases.  There is also the potential of increased trade tensions between the US and Europe.   Gold is up again.  The 10-year is down 1/32 to yield 0.72%.


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