Good Morning on this fantastic Thursday,
Quick glance at the news has Unemployment claims at 5.2mm above expectations of 5.0mm. The aggregate number of claims over the last 4 weeks has topped 22mm. That is unfathomable. How long does it take everyone to get back to work when the country re-opens? Housing starts tanked; permits held their own, which is like the bright spot in all of today’s data. More bank earnings out today that were dismal. The banking industry, which is the bedrock of the financial markets, is in trouble. The 350b Paycheck Protection Program which is part of the $2.3trillion stimulus plan is already out of money. I think that was less than a week since the SBA started accepting applications. Things are going to be rocky folks.
This seems to be a good place to avoid risk. Bonds are having a good day as a result. Stocks are down a bit with the Dow -200. It is hard to imagine we do not see a major sell off given the recent economic releases.
Please stay safe and healthy. Make today great!