S&P futures are currently 56 points lower. Most of this is because of negative news. We are BEARISH today for the S&P 500 and warn investors/traders that there could be a massive sellout in the afternoon most likely after the Baker Hughes Rig Count Data (1 p.m.). That being said we think that the markets are in a general consolidation pattern and we are exiting the bear trend.
Negative News Driving the Markets
The White House was said to be considering a plan to block a government retirement fund from investing in Chinese stocks, stoking fears the relationship with China is worsening.
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U.S. jobless claims surpass 30 million as distress mounts. Nearly four million Americans filed for jobless benefits last week, with total claims now equaling 12.4% of the workforce. Consumer spending fell 7.5% in March, the most significant monthly decline on record dating to 1959, and personal incomes dropped 2%, the largest decrease since 2013.
Eurozone economy shrinks at the fastest pace on record, more sharply than the US. The massive first-quarter decline in Europe portends deep pain and wide economic divergences in 2020.
Boeing set to raise $25 billion in massive debt sale. Boeing expects to raise around $25 billion in its bond offering on Thursday, according to people familiar with the matter, a blowout result for the planemaker shoring up its finances during the coronavirus-induced travel downturn.
J. Crew prepares to file for bankruptcy. J.Crew Group, the preppy retailer that recently fell on hard times, is preparing to file for bankruptcy protection, one of several high-profile U.S. chains that are on the verge of unraveling during the coronavirus pandemic.
United Airlines posts quarterly loss, shores up $9.6 billion in liquidity. United Airlines on Thursday posted a first-quarter loss of $1.7 billion, including charges against investments in Latin America that have soured as the coronavirus pandemic jolts travel industries worldwide.
Positive Market News
Fed expands ‘Main Street‘ program to firms with up to 15,000 workers. The U.S. Federal Reserve on Thursday widened a key program to nurse the “Main Street” economy through the coronavirus pandemic, agreeing to lend to even larger firms, taking on more risk in participation with banks, and hinting at some form of dedicated help for non-profits.
Pelosi says states and cities seek $1 trillion in the next stimulus. House Speaker Nancy Pelosi said Thursday towns and states alone are trying as much as $1 trillion in aid in the next coronavirus relief package, a figure that may be tough to reach as Congress juggles demands to bolster the economy.
FDA moving at ‘lightning speed’ on Gilead drug, commissioner says. The Food and Drug Administration is moving at “lightning speed” to review data on Gilead Sciences Inc.’s experimental Covid-19 treatment remdesivir, Commissioner Stephen Hahn said, after encouraging results emerged from a pivotal U.S. trial.
Half of U.S. states easing coronavirus restrictions as jobless numbers grow. As White House economic reopening guidance expired on Thursday after two weeks in a place, half of all U.S. states forged ahead with easing restrictions on restaurants, retail, and other businesses in hopes of reviving coronavirus-stricken commerce.
Macy’s to begin reopening stores on Monday. Macy’s plans to reopen 68 stores on Monday in states that have loosened restrictions, joining a handful of other retailers that are limping back to life after the coronavirus forced them to shut stores.
ABBV, APO, ASIX, BCPC, BELFB, BERY, BGG, CBOE, CHTR, CL, CLX, CVX, EL, HON, HRC, HUN, IMGN, ITT, JCI, LYB, MGI, MINI, MMP, NWL, OPI, PCG, PIPR, PSX, PSXP, TEX, TKR, VRTS, WETF, WPC, WSC, WY, XOM, ZEUS before the open.
DTEA after the close.
Japanese Tokyo CPI for April
Markit/JMMA Japanese Final Manufacturing PMI for April
Japanese Registered Auto Sales for April
U.K. BoE Net Mortgage Lending for March (4:30 a.m.)
U.K. BoE Net Consumer Credit for March (4:30 a.m.)
U.K. Net Lending to Individuals for March (4:30 a.m.)
U.K. Final CIPS Manufacturing for April (4:30 a.m.)
Markit U.S. Final Manufacturing PMI for April (9:45 a.m.)
Construction Spending for March (10 a.m.)
ISM Manufacturing Price for April (10 a.m.)
Baker Hughes Rig Count Data (1 p.m.)
CFTC Commitment of Traders Report (3:30 p.m.)