Your Thursday Blip 6/11/20

Your Thursday Blip 6/11/20

Fears of a second coronavirus wave and continued high jobless claims sent stocks down hard today with the Dow falling 1,861 points to close at 25,128. Trading volume was lower for the Dow but higher for the NASDAQ. One interesting note is that high quality bonds and muni bonds held up well in a traditional flight to safety which was an improvement over the bond route that was seen back in April.
Covid infection rates are rising in 21 states and hospitalizations are up in 9 states. While testing is averaging 419k per day and rising the number of active cases have risen for six days straight. Active cases peaked May 30th and trended lower through June 4th but now are on an upswing.
Federal Reserve Chairman Jerome Powell spoke about the economy and basically said he would not raise interest rates at this time. While the Fed’s assessment was that financial conditions have “improved” there was too much uncertainty to issue any forward guidance. Unemployment claims rose another 1.542 million but the number of continuing claims fell again to 20.92 million reflecting a gradual reopening of the economy.
Boeing expects to make its 737 Max recertification flight for the FAA by the end of the month. For the month of May the company booked 9 new orders but saw 18 cancelations for the 737 Max and delivered only 4 aircraft.