Your Monday Market Blip 4/6/20

Your Monday Market Blip 4/6/20

Stocks put in a nice rally to start the trading week as hopeful signs regarding the spread of the virus emerge. The Dow closed the day up 1,627 points or 7.7% to 22,679. Trading volume was heavy. IBD has markets in “rally” while BTS continues to stay safe.
The PPP or Paycheck Protection Program of small business loans is off to a fast start even though some banks and customers experienced glitches. Bank of America said it booked 178,000 applications as of Monday for proceeds of $32.9 billion under the program which represents almost 10% of the total that congress allocated. The Federal Reserve also said today it will backstop the Small Business Administration’s emergency loan program which is called the PPP. The Federal Reserve will allow establishment of term financing thus allowing PPP loans originated by banks to by taken by the Fed so that banks will be able to maintain liquidity. Jay Powell said details of the plan will come out next week.
High flying shares of video conferencing firm Zoom Video were hit today as security issues surrounding its program caused some customers to seek alternative platforms like Microsoft Team or Slack. Apparently the Zoom video conferences allowed unauthorized people to attend meetings and gain sensitive data in a practice called “Zoombombing”. CEO Eric Yuan said the company had dropped the ball and was working hard to regain customer confidence. In a side note people working from homes that have Amazon’s Alexa are being told to turn these things off while they are on video conferences so that Amazon isn’t able to listen in.
It appears OPEC plus Russia will host a teleconference on Thursday (I wonder if it is a Zoom conference) to discuss production levels. Reuters said its sources in Russia are indicating they are open to a cut but we will have to wait and see. WTI crude today traded down 7.5% to $26.19 per barrel. In other commodity news the price of eggs in the US has shot up by almost double as demand for eggs at grocery stores is up 30% in the past month. Since we know that hens cannot increase their production by 30% on demand and that it takes 21 weeks to turn a pullet into an egg producing hen we could see high egg prices for now. Which came first? The hen or the eggs or the profit margin?