Your Weekly Market Blip 4/17/20

Your Weekly Market Blip 4/17/20

The Dow rallied as increased chatter about restarting the economy lifted spirits. At the close the Dow was up 704 at 24,242 on heavy trading volume. Hard hit sectors like banks, energy and industrials jumped on heavy volume while the tech sector closed marginally higher. Global equities followed suit even though China reported a drop in GDP of 6.8%. For the week the Dow was up 2.1%. IBD continues to show markets in rally mode.
Boeing announced it will restart commercial airplane production and bring 27,000 workers back to its Puget Sound facilities in a phased approach beginning next week. It is also eyeing 737 Max recertification flights sometime in May. Operations at South Carolina will remain suspended at this time. Not all the news was good however as GE Capital Aviation announced it was reducing its 737 Max order by 69 planes and keeping the remaining order at 82 aircraft.
The plan drawn up by the CDC to reopen the economy seems to make sense. It is divided into three phases and will be data driven plus require preparedness, monitoring and guidelines. Each state will decide when they meet criteria and how to implement guidelines and will have the backing of the Fed. This decentralized phased approach will take time and signals the possibility of a deeper recession. Through it all the Federal gubment will continue to ramp up testing and tracking resources all while building PPE stockpiles in case of a flareup or resurgence.