Your Monday Market Blip 4/27/20

Your Monday Market Blip 4/27/20

The markets moved higher as more states announce steps to end lockdowns and get back to business. The Dow closed the day up 358 points on heavy trading volume to close at 24,133. On tap this week is a Federal Reserve Board meeting and more earnings reports from companies like Apple, Tesla and Amazon. Bank and financial stocks were sharply higher today. IBD still has markets listed in rally mode.
PPP 2.0 is up and running with funding of small loans starting today. The SBA has tightened the rules on who gets money after several publicly traded firms took advantage of the program. This new round of funding comes with more restrictions but is open to farmers and ranchers plus more of the money is being directed through community banks which tend to have closer ties with small business. The average PPP loan size is about $210k.
One interesting trend is occurring in new home construction. After sales of newly built homes fell 85% in March the data surprisingly turned positive in mid-April after researchers found that people in small urban rentals under shelter-in-place orders began experiencing cabin fever and started looking for a bigger homes with more space. Zillow reported increased online searches for new homes and as more companies see the value of working remotely the attitude which says you need to come into the office everyday has changed. The research indicates that millennials may be on the cusp of migrating out of urban cores and into a home in the burbs.