06May2020 Midday Update: Wall Street Unsure Over Easing Lockdowns, DOW Down Over 75 Points At Noon, WTI Crude At 24.59, US Dollar Getting Stronger At 100.12, Private Payrolls Tumble By A Record 20.2 Million

Here is the current market situation from CNN Money

North and South American markets are mixed. The IPC is higher by 0.15%, while Brazil’s Bovespa is off 0.33%. Shares in U.S. are unchanged with the S&P 500 at 2,868.33.

As central banks break the junk debt barrier, investors will follow

May 6 (Reuters)- Recent central bank bond-buying to calm market turmoil has breached the wall dividing top-grade debt from so-called junk-rated issues, raising the likelihood of the investment industry and even regulators eventually dismantling the barrier.

Wall Street gains on optimism over easing lockdowns

Wall Street’s main indexes rose on Wednesday on hopes of a pickup in business activity as states eased coronavirus-induced curbs, with investors also looking past a stunning 20 million plunge in U.S. private payrolls last month.

U.S. has fully complied with WTO subsidy findings against Boeing: USTR

Washington state’s repeal of tax breaks for Boeing Co means that the United States has fully complied with World Trade Organization’s findings of illegal subsidies for the aircraft maker, the U.S. Trade Representative’s office said on Wednesday.

World shares subdued amid weak data; oil resumes gains

Global shares struggled on Wednesday as weak economic data, doubts about the easing of coronavirus lockdowns and simmering U.S.-China tensions cast a pall over markets.

U.S. private payrolls tumble by a record 20.2 million in April

U.S. private employers laid off a record 20.236 million workers in April as mandatory business closures in response to the novel coronavirus outbreak savaged the economy, setting up the overall labor market for historic job losses last month.

United Airlines to raise $2.25 billion in bonds, rolls back plan to cut work hours

United Airlines Holdings Inc said on Wednesday it plans to raise $2.25 billion through a bond offering amid a coronavirus-linked slump in air travel demand, and backtracked on a controversial plan to cut working hours for thousands of employees.

Uber to cut 3,700 jobs, CEO Khosrowshahi to waive base salary

Uber Technologies Inc will cut about 3,700 full-time jobs and Chief Executive Officer Dara Khosrowshahi will forgo his base salary for the remainder of the year, the company said on Wednesday, as the COVID-19 pandemic decimates its ride-hailing business.

Barrick profit jumps on higher gold prices, eyes deals

Barrick Gold Corp posted a nearly 55% rise in quarterly profit on Wednesday as gold prices surged, bolstering its ability to snap up mines including in copper, its chief executive said.

GM sets May 18 North American restart as profit tops estimates

General Motors Co on Wednesday outlined plans for a May 18 restart of most of its North American plants shut down by the coronavirus pandemic as it reported a stronger than expected quarterly profit, sending its shares up 7.8% in premarket trading.

Comptroller Warns 1 In 5 Jobs Will Evaporate As NYC Faces Biggest Crisis Since Great Depression

Comptroller Warns 1 In 5 Jobs Will Evaporate As NYC Faces Biggest Crisis Since Great Depression

During the depths of the financial crisis as Lehman collapsed and fears about another Great Depression spiked, nearly 200,000 Wall Street professionals lost their jobs. But that figure will likely pale in comparison to the broad-based economic destruction brought by the coronavirus, which will hammer virtually every industry and sector. To wit, in a presentation from NYC Comptroller Scott Stringer responding to Mayor de Blasio’s budget proposal for the coming fiscal year, Hizzoner’s anointed successor (Stringer is planning a run for mayor next year when Blaz gets term-limited out) revealed that the city will lose as many as 900,000 jobs – roughly 1 in 5 – as the fallout from the crisis worsens.

America Has Become “The Land Of The Snitches” During This Coronavirus Pandemic

America Has Become “The Land Of The Snitches” During This Coronavirus Pandemic

Authored by Michael Snyder via TheMostImportantNews.com,

For those that wondered if Americans would be willing to report on their neighbors on a widespread basis during a major crisis, you now have your answer. All over the country, calls have been pouring in to authorities from œconcerned citizens that are quite eager to point a finger at their neighbors for violating the coronavirus lockdowns. In fact, it has been reported that some very nosy people in the state of California were actually calling 911 to report that their neighbors were coughing inside their own homes. Of course the mainstream media is not exactly helping matters when they use phrases such as œdeath sentence  to describe this pandemic. Yes, we should all be taking this virus very seriously, but the truth is that this is not the end of the world and everyone needs to calm down.

Nomura’s McElligott Turns Bearish: With No More Buyers Left, Stocks To Slide Across The Summer

Nomura’s McElligott Turns Bearish: With No More Buyers Left, Stocks To Slide Across The Summer

Failing to take advantage of positive dealer gamma, the S&P is now stuck in “no man’s land” and as Nomura’s Charlie McElligott writes in his latest note, the market is “essentially near the Dealer œNeutral Gamma level (~2845) and between 2 of the 3 largest Gamma strikes on the board (2850 w $1.355B and 2900 with $1.284B), while also now at the œNeutral Delta level (2882 incl this week’s expiry).”

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WTI Rebounds On Smaller-Than-Expected Crude Build, Production Cuts

WTI Rebounds On Smaller-Than-Expected Crude Build, Production Cuts

Oil prices suddenly tumbled this morning after a five-day surge as it appears the surge in ADP unemployment data (completely expected) seemed to remind the machines of the persistent concern that the global glut will take a long time to eliminate as demand remains crushed by the coronavirus.

Most analysts don’t see demand rebounding to pre-virus levels for at least a year, with some questioning if that will ever happen. The risk of a second wave of infections in the U.S. as states reopen can’t be discounted, while deteriorating relations between Washington and Beijing may hamper the global economic recovery.

œWe’ve gone on Brent from $20 to $32, that’s a lot, said Tor Svelland, chief executive officer of commodities fund Svelland Capital.

œThe demand destruction is still there, it’s a very, very strong move.

And while initially last night’s bigger-than-expected API-reported crude build was ignored, oil prices are losing steam fast this morning.

API

Crude +8.44mm (+7.1mm exp)

Cushing +2.681mm

Gasoline -2.237mm (-400k exp)

Distillates +6.143mm (+3.5mm exp)

DOE

Crude +4.59mm (+7.1mm exp, +9.51mm WHIS)

Cushing +2.068mm

Gasoline -3.158mm (-400k exp)

Distillates +9.518mm (+3.5mm exp) – biggest build since Jan 2019

This is the 15th straight week …

Perfecting Covid math is a shot in the dark, CEA explains why

Perfecting Covid math is a shot in the dark, CEA explains whyUnlike ’08, economic impact now is tied to the pandemic and health, so it is far harder to estimate damage.

Zomato wants to bring you your next drink

Zomato wants to bring you your next drink Zomato wants to cash in on the high demand for booze during the country’s coronavirus lockdown.

ET Online’s 43-day lockdown scorecard

ET Online’s 43-day lockdown scorecardThe virus has brought the Indian economy to new low after new low over the past six weeks.

April 2020 ADP Employment Declines 20,236,000

Written by Steven Hansen

ADP reported non-farm private jobs growth at –20,236,000 which was at expectations. A quote from the ADP authors:

The total number of job losses for the month of April alone was more than double the total jobs lost during the Great Recession.

Trump Today: Trump backs away from plan to shut coronavirus task force, says it will continue ‘indefinitely’

President Donald Trump on Wednesday said the White House’s coronavirus task force would continue its work œindefinitely, backing away from earlier plans to wind it down.

Futures Movers: Oil futures fall as concerns about storage capacity prevail despite a smaller-than-expected rise in U.S. crude supplies

Crude futures trade lower on Wednesday, with the U.S. benchmark contract at risk of snapping a five-session streak, pressured by concerns over tightening oil-storage capacity even as weekly crude inventories rose less than expected and domestic production declined.

Brett Arends’s ROI: Hey, Mitch McConnell ” Have you seen your state’s pension fund lately?

And why are subsidizing Kentucky so much anyway?