05May2020 Midday Update: Wall Street Jumps As Battered Energy Shares Rise, Lockdowns Ease, DOW Up 400 Points, WTI At 26.17, US Household Debt Reached $14.3 Trillion

Here is the current market situation from CNN Money

North and South American markets are sharply higher today with shares in Brazil leading the region. The Bovespa is up 2.13% while U.S.’s S&P 500 is up 1.91% and Mexico’s IPC is up 1.13%.

Oil surge lifts global stocks out of three-day losing streak

A gauge of global stock markets snapped a three-day losing streak on Tuesday as moves to ease major economies out of their coronavirus lockdowns lifted the outlook for growth and helped give international oil prices a sixth day of strong gains.

Wall Street jumps as battered energy shares rise, lockdowns ease

Wall Street’s main indexes jumped on Tuesday as a recovery in oil prices lifted battered energy stocks and a slew of countries eased coronavirus-induced restrictions in an attempt to revive their economies.

Fed’s Evans says ‘reasonable’ to expect U.S. to return to growth after June

Chicago Federal Reserve Bank President Charles Evans said on Tuesday that it’s “reasonable” to expect a return to economic growth in the second half of the year, but that such an outcome is only slightly more likely than other, more pessimistic views.

Impossible Foods to sell plant-based burgers in Kroger’s 1,700 stores

Plant-based meat maker Impossible Foods will start selling its flagship burgers in supermarket chain Kroger Co’s 1,700 stores in the United States, as it taps growing demand for vegan alternatives among home chefs.

Wendy’s menu runs short as virus hits U.S. beef supplies

Wendy’s Co said on Tuesday its restaurants may face a shortage of many menu items, including hamburgers, as beef processors in the United States struggle to keep their plants open amid the COVID-19 pandemic.

U.S. household debt reached $14.3 trillion, credit standards tightened in first quarter

American households added $155 billion of debt in the first quarter and overall debt levels rose to a new record at $14.30 trillion, the Federal Reserve Bank of New York said on Tuesday in a report that provides a snapshot of where household balance sheets stood before the coronavirus pandemic brought much of the economy to a halt.

Thomson Reuters cuts sales outlook, narrowly misses earnings estimates

Thomson Reuters cut its full-year sales outlook due to disruption to the global economy from the coronavirus crisis on Tuesday as it reported higher quarterly sales and earnings which fell slightly short of Wall Street estimates.

White House adviser expects U.S. unemployment rate for April to be ‘north of 16%’

White House economic adviser Kevin Hassett on Tuesday said he expects the U.S. unemployment rate was above 16% in April, as the coronavirus pandemic began to devastate the country’s economy.

Global airlines body IATA backs face masks for safe flying

The body representing global airlines came out in favour of passengers wearing masks onboard on Tuesday, as debate intensifies over how to get airlines flying while respecting social-distancing rules following the coronavirus crisis.

China Slams ‘Evil Liar’ Pompeo Over Wuhan Lab ‘Nonsense’

China Slams ‘Evil Liar’ Pompeo Over Wuhan Lab ‘Nonsense’

Secretary of State Mike Pompeo must be over the target, as he’s been taking massive amounts of flack from Chinese state media after he said there was “enormous evidence” that the COVID-19 pandemic started in a Wuhan laboratory where scientists were experimenting with coronavirus.

These Are The Top 8 Things Goldman Is Watching As The Economy Reopens

These Are The Top 8 Things Goldman Is Watching As The Economy Reopens

Authored by Goldman economist Zach Pandl

1. Virus transmission through reopening still a major source of two-sided risk.

In our view the most important risks to confidence in a reversal of economic damage are medical in nature. The key unknown, in our view, relates to the sensitivity of virus transmission to economic activity. On the one hand, it may be possible to restart significant amounts of business activity while keeping the public health risks manageable. As our economists point out, a number of behavioral changes, like mask wearing and more frequent cleaning of workplaces, should help lower transmission rates, all else equal. There is also potential upside risk from good news on treatments and vaccines, although the market has taken some credit already. On the other hand, we may find out that transmission rates pick up after restarting activity only in the œeasier sectors, like manufacturing and construction. At this point we simply do not know what will happen. Countries that have relaxed restrictions already, like China, never had the same widespread outbreak that Western countries experienced. Others that have tried to go without government-mandat …

A Fifth Of Wendy’s Restaurants Said To Be Out Of Beef As Shortage Spreads

A Fifth Of Wendy’s Restaurants Said To Be Out Of Beef As Shortage Spreads

Rolling meat shortages are now underway in the US. We warned several weeks ago that this would begin in the first half of May as a crisis unfolds at the nation’s meat processing plants due to coronavirus outbreaks.Â

At the moment, the food supply chain is cracking. At least a dozen processing plants have shuttered operations and output reduced at others, resulting in surging wholesale beef prices and shortages at supermarkets.

In Uncharted Territory: Are You Really Buying At These Valuations?

In Uncharted Territory: Are You Really Buying At These Valuations?

Via Global Macro Monitor,

More than his words, he spoke with his wallet. He usually relishes a down stock market to take advantage of lower prices. Not this time. He hadn’t made any purchases recently; he didn’t buy up stocks when they had fallen last month during what felt like a mini-panic: œWe have not done anything, because we don’t see anything that attractive to do.

“Â Warren Buffett, NY Times

Berkshire Hathaway held its annual œWoodstock for Capitalists over the weekend. The event was conducted virtually because of the global pandemic where Buffett expressed a deep sense of concern about the immediate future.

Not Buying

Warren ain’t buyin’ nuttin’.  In fact, he has just dumped all of his airline stocks.

Take a look at the stock market cap-to-GDP ratio, aka the Buffett Indicator, and you will get of sense why Warren is stingy with his cash, which is mounting higher and higher to $137 billion b …

In India’s fight to save lives, 122 million lose their livelihoods

In India’s fight to save lives, 122 million lose their livelihoodsDaily wage workers and those employed by small businesses have had to take the biggest blow.

India whips out warships to get citizens back

India whips out warships to get citizens backIndia banned all international flights in late March as it imposed one of the world’s strictest lockdowns.

How do you buy a car in a lockdown? Just call

How do you buy a car in a lockdown? Just callFord India announced the launch of contactless sales and service of vehicles as its dealerships resume ops.

April 2020 ISM and Markit Services Surveys In Recession Territory

Written by Steven Hansen

The ISM and the Markit PMI Services Index significantly declined and are in recession territory.

The Fed: Fed’s Evans sees return to economic growth after June but admits pessimistic scenarios are almost as likely

Chicago Fed President Charles Evans said Tuesday it is reasonable to expect a return to growth in the second half of this year, but said more pessimistic scenarios are almost just as likely.

Key Words: Trump complains women White House reporters aren’t like Donna Reed ” but she wasn’t like the housewife she played, either

The real Donna Reed was an anti-war activist known as a ‘troublemaker’ in Hollywood.

Key Words: Elon Musk’s newborn might have the strangest name you’ve ever heard

œMom & baby all good, Musk told his fans in a tweet.