Your Monday Market Blip 5/4/20

Your Monday Market Blip 5/4/20

Stocks began the day lower but rallied into the close. The Dow ended the day up 26 points at 23,749. Trading volume was mixed. IBD still shows markets in rally mode and todays reversal was constructive. Tech stocks were higher today as were energy and utilities.
Oil prices continue to recover with WTI crude hitting $21 per barrel up 7.5%. As production continues to fall global oil demand is expected to recover modestly from Aprils lows as states and nations begin easing lockdowns. The supply glut however is enormous and will continue to pressure prices. Another concern is rising tensions between the so called “infectees” which include the US, Canada, Europe, Australia and Africa and the “infector” which is China over how the initial outbreak was handled in Wuhan. Natural gas prices rose about 4% today and currently trade near $1.93 per mmbtu.
According to the Puget Sound Business Journal, apartment landlords in the Seattle area reported that 10.6% of people did not pay rent in April compared with the prior month in which 2.5% did not pay. Landlords are wondering how May will play out and expect more stress. In the commercial space certain sectors like grocery stores are doing well and mom and pop businesses are paying rents but landlords are reporting that regional franchisees and national tenants are less cooperative. The second tranche of the PPP is hitting accounts however and landlords expect those recipients to pay all or at least part of the rent.