Your Crazy Thursday Market Blip 3/26/20

Your Crazy Thursday Market Blip 3/26/20

The $2 trillion stimulus bill passed the Senate and now heads to the House for debate with a vote scheduled for early Friday. At the close the Dow finished with a late flurry at 22,552 up 1,351 points. Trading volume was lower. Three up days in a row is nice but stay vigilant. Both BTS and IBD remain on the sidelines.
Tech shares were up after Micron reported better than expected earnings and raised its forward guidance citing an anticipated boost from people working from home. Reports out are showing that internet usage has risen 70% during the crisis.
The weekly reading for new unemployment claims came out today and while historic in terms of its jump higher the number was not as bad as some had feared. Two weeks ago new unemployment claims were 210,000. One week ago it was 280,000 and today it was 3.28 million! This implies an unemployment rate of 5%. Federal Reserve Chair Jay Powell commented that the central bank would stay aggressive for as long as it takes. 60 Minutes did a good segment on Sunday when it interviewed Neal Kashkari who is head of the Minneapolis Fed. Neal was in charge of the TARP program during 2008 and did a wonderful job and his interview is worth the time to watch. Check it out on CBS.com
Utility stocks and municipal bonds made moves higher today as people start to realize that no one is turning the power, water and sewer off plus everyone using video conferencing knows this relies on cloud data centers which run on electricity. KMS yesterday hosted a conference call and market guru Phil “Mr. Vivacious” Blancato suggested that municipal bonds were priced lower than “a snakes belly in a wagon rut” and to back up the truck and his comments were fortuitous as muni prices surged today as buyers rushed into muni paper.

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