April 16, 2020
Yesterday was another rough day on Wall Street, with upcoming economic reports fueling renewed concerns about the effects of the coronavirus. The Dow, S&P 500 and the NASDAQ declined 445.41 (-1.86%), 62.7 (-2.2%) and 122.56 (-1.44%) points, respectively. The Trump administration continues to work with the governors of each state to develop a plan to reopen the economies of their respective states. By all indications, some states may be open for business by the end of April.
Dow futures bounced around this morning pre-market waiting for the 5:30am release of the newest unemployment report. While market analysts projected between 5 and 8 million Americans filing for first time unemployment benefits, with the Labor Department expecting 5.11 million filers. When the figure of 5.25 million new first time filers, the market futures actually improved as the actual number was not as bad as it was predicted it could have been.
Also of concern today were reports of corporate earnings and housing starts – both ultimately reflecting growing weakness.
Much of today’s reporting seems to be focused on the original source and spread of the coronavirus, and China’s role in both. This will, with little doubt, affect the long-term relationship between the U.S. and China – perhaps most immediately in the production of pharmaceuticals.
Stay safe and healthy.