Your Weekly Market Blip 4/3/20

Your Weekly Market Blip 4/3/20

The Dow ended the trading week with a 360 point loss at 21,052 on light trading volume. IBD switched to “markets in rally” and this is based on the recent trend of low volume down days and high volume up days. BTS remains on the sidelines however and cautions against rallies as they might be dead cat bounces. For the week the Dow fell about 2.9%.
The March jobs report showed a loss of 701k jobs and the unemployment rate climbing to 4.4%. Service sector job losses were huge while the gubment added jobs. Given recent trends in unemployment claims the jobs report due at the end of April will be much worse so today’s report was just the beginning but between now and then the stimulus package will be moving into the economy and could help mitigate the pain. We are hearing several people point to April 19th as a possible date for “peak virus” which is what money managers want to see happen before healing can begin.
The head of the SBA (Small Business Administration) said that by 8:30 am on Friday over 2,335 loans were given through 239 community banks totaling about $889 million smackers under the PPP or “Payroll protection program”. Big banks are expected to come on line with the program later today and a total of $350 billion will be available through the program and eventually work its way into the system.
Tesla posted a positive vehicle delivery report by getting 88,000 electric cars to customers making it one of the few automakers to give a thumbs up. The Fremont, CA factory was forced to spin down operations but the plant in Shanghai continued to crank out cars at record levels. The first deliveries of the new Model Y happened in March and CEO Elon Musk said he expects demand for this car to be higher than all other models combined.
Oil prices continued to move higher adding another 13% in value after yesterday’s record jump. Reports out are indicating the Russia and Saudi Arabia along with the rest of OPEC and the US are looking to meet on Monday with a possible production cut across the board. Oil demand is expected to fall by upwards of 30 million barrels per day globally until the virus slowdown passes.