Your Thursday Market Blip 3/5/20

Your Thursday Market Blip 3/5/20

This Blip is early since we will be out of the office this afternoon.
As of 9 am the markets are giving back some of yesterdays gains. The Dow was off 725 on flat volume at 26,365. Shares of Netflix and Campbell’s Soup are higher and Costco is selling hand sanitizers like hotcakes.
Seattle is slowing down as King County is urging its 2.3 million citizens to stay home and telecommute if at all possible. While this is not a mandate county leadership is urging people to avoid large gatherings and has even canceled all its own large planned events until the end of the month. After an employee at Facebook and one at Amazon tested positive several big firms are directing employees to work from home until the 31st of March and word also came out that Northshore School District with its 23k kids will close starting today for 2 weeks and roll out an online learning platform on Monday. It is likely that other districts will follow suit but so far Seattle schools are open even though the janitors are sanitizing everything. VP Mike Pence is headed to Washington to meet with Gov. Inslee and we will see what comes of that. The King county council also stressed that people over the age of 60 hunker down and eat bon bons on the couch while watching soap operas until the “All clear” is given.
The Mortgage Bankers Association Refi Index jumped 26% from the previous week after the Fed lowered interest rates by a half point. With the 10 year treasury yield dipping below 1% 20 year mortgage rates have “fallen and can’t get up” to 3.5%. Over the past 10 weeks the Refinance series has sprinted ahead by 160% which is the largest gain since January 2009.