TodayFutures are up again following a eye-popping rise yesterday which led the S&P 500 7% higher, and 5% for the S&P/TSX Composite. The recent ability for the market to ‘see-through’ the data is admirable, but with recession risks now at 100% we still question whether or not the market is pricing in too quick of an economic recovery, and what it will look like. Oil is now even higher as signs continue to point towards a deal. What that looks like and whether parties involved will stick to the plan remains unknown. Concerns over the effects of the pandemic have the market acting rather manic. It averaged swings of 5% in March, and so far the daily average move has averaged 3.8% in April.
British Prime Minister Boris Johnson was moved to intensive care yesterday after his condition worsened. His
last tweet was 23 hours ago, indicating a ‘routine’ trip to the hospital in the middle of the night for some tests. I’m sorry but there is nothing routine about that. We wish him our best in this battle. Officials said he was receiving oxygen, but was conscious and not on a ventilator. Foreign Secretary Dominic Raab is now deputizing for Johnson.
So, what has investors so upbeat? As we noted yesterday the fact that new case growth appears to be cresting in Europe Italy/Spain have their lowest number of new COVID-19 cases since March 17/22 and The U.S. government is also refueling the helicopter. Umm, we mean preparing the next stimulous bill to prop up the economy.
U.S. government leaders are signaling an agreement is possible soon on further stimulus to combat the coronavirus pandemic. House Speaker Nancy Pelosi says a $1 trillion bill including direct payments to individuals, extended unemployment insurance is required. President Donald Trump also says more financial support is needed and Senate Majority Leader Mitch McConnell says health care needs priority in the next coronavirus bill.
With earnings season just around the corner, a big question on investors’ minds is dividends. Precisely, who will be paying them as expected and who will be cutting them? Just like the index itself, there is a futures contract priced solely on the expected S&P dividends in the future. The Dec 2020 contract has fallen 44% from its peak in February. Looking along the curve, it’s possible that U.S. shareholders have to brace for a nine-year squeeze on dividends. Pricing of the futures indicate corporate payouts will not top the 2019 level until 2028.
Greed and fear collide: Wall Street calls traders back to the office.
More than 100 employees were on the message chain seen by Bloomberg, and some were horrified. It came soon after an outbreak of Covid-19 inside JPMorgan’s Madison Avenue headquarters, in which at least 16 people tested positive on a single trading floor. With billions of dollars at stake some companies are having a tough time balancing business requirements and the safety of their employees.
Diversion: A skier who had his vacation plans crushed has found a genius way to ski in his living room in this
funny short film.