Your Tuesday Market Blip 4/7/20

Your Tuesday Market Blip 4/7/20

Stocks Opened higher on strong volume but then pulled back and went negative and closed the day off 26 points at 22,653. IBD continues to show market in rally while BTS plays defense and urge caution.
Oil prices fell 6% to $24.47 per barrel for WTI crude as OPEC and Russia gear up for a meeting that might occur Thursday or Friday. US drillers continue to curtail activity and Exxon announced today it was lowering its capex budget by 30%. Gold shot up and crested $1,700 per ounce before settling back at $1,682. There is chatter about inflation rearing its head due to all the money printing and gold has been a beneficiary of that talk.
The US economic outlook slid 6.2 points to 47.8 which is pessimistic territory. The six month outlook went from strongly optimistic to downright gloomy with a reading of 38 which is the lowest level since October 2011 when Greece was imploding. US economic output also fell by 29% in the latest reading according to Moody’s Analytics which is now projecting a GDP decline of 30% for the second quarter.
The PPP or “payroll Protection Plan” continues to see strong demand. Bank of America is now up to 212,000 loan apps and while Wells Fargo, which got a late start on the program hit its $10 billion target limit in just a couple days. JP Morgan Chase is seeing overwhelming interest and is grappling with getting each loan to the SBA. Current estimates show that over $60 billion in loans have been processed by 3,000 banks working with the SBA and Treasury is watching the program and working with Congress to make sure funding gets out the door.