Your Weekly Market Blip 4/9/20

Your Weekly Market Blip 4/9/20

Stocks closed out the shortened pre-Easter trading week on an uptick as the Dow gained 285 at 23,719. Trading volume rose significantly. Bank stocks and energy related companies were higher. For the week the Dow gained about 12%. Gurus appear to be cautiously optimistic but at the same time no one wants to pile in only to see another test of the bottom at an unprecedented time.
The Federal Reserve today announced another fiscal stimulus package of $2.3 trillion smackers. The program is aimed at providing small and mid-sized business along with giving cities, counties and states access to liquidity in the form of loans. The Fed also said its would expand its corporate bond buying program to include bonds that were downgraded to junk as a result of the virus shutdown. This news might be why we have seen a recent rebound in the high yield bond market.
Commodity prices continue to rise and gold moved up almost 3% today to trade at $1,733 an ounce. Oil also moved up 2% but then faded and WTI crude closed at $23.30 per barrel down 7%. Everyone is watching the OPEC Plus meeting for announcements of production cuts. Russia has indicated it would like to see coordinated production cuts that include the US but this would put US oil companies in trouble with antitrust laws that prevent colluding with OPEC and Russia to run up prices. US production has already fallen due to prices which might make Russia’s hope of a US production cut a moot point.
Both Boeing and Airbus continue to cut production. Boeing lost an order for seventy four 737 Max jets from Avolon which also reduced its Airbus order. Avolon is a company that buys and leases jets for the HNA Group in China and the Boeing order was valued at roughly $9 billion. Airbus announced it will cut production by a third.