Published Every MondaySince 2007| Volume 697| March 30, 2020
So far YTD these many weeks were up (Bull), down (Bear), or draw (Bull/Bear) … Bulls (Markets UP) = 05… Bears (DOWN) =08…and Draw = 0
Bulls return with force – – The DOW up over 2600 (~+14%) points for the week
The DOW was +2608 or +13.71%, S&P500 was +251 or +10.95%, and the NASDAQ was +655 +9.57% for the week ending March 27th. This is a record one week gain since the 1930s. The markets broke the daily and massive recent decline by claiming three consecutive days of positive gains, and a weekly gain after a feed weeks of record declines.
The positive move was mainly driven by various experts claiming that markets are near bottom which brought people with cash to buy stocks at cheap. In addition, the US congress passed over $2T Coronavirus Relief Package which president quickly signed into law. This bill is a positive move for the economy and people who have been laid-off, businesses closed, stay-home rules, and overall economic halt. In this bill most people will get cash in three week to help with their immediate cash needs for food, rents, and living expenses. It will also provide extended unemployment benefits. In addition, this bill helps many corporations, business, state governments, healthcare services, and many more. This is a massive $2T package and it is about 10% of the US GDP!
The weekly jobless claim for the week rose to a record three million. This is a very bad sign which is expected to get worse as more business start to lay-off despite the Coronavirus Relief Package. The spread and control of the spread is the key to safety of people and the economy. Many selfless people are working very hard to protect the rest. Bravo to all medical, first responders, volunteers, national guard, military service men and women.
Oil slide continued – the key oil producing countries – Saudi Arabia and Russia- continue their oil production in a price war. Oil markets roiled sending oil prices below $20 at one point but closing at $24 per barrel, down -$9.23 or -28.21%.