Written by Gary
S&P 500 ends lower on fears of virus resurgence in economic reopening (SPY -2.0%) as Fauci warns US of reopening too quickly.
The Market in Perspective
| Here are the headlines moving the markets. | |
 | Twitter to let some employees to work from home permanentlyTwitter Inc on Tuesday became the first major tech company to allow employees who can work remotely to do so indefinitely, as the coronavirus outbreak forces unprecedented changes in work culture across the world. |
| S&P 500 ends lower on fears of virus resurgence in economic reopeningThe S&P 500 closed lower after a choppy session on Tuesday as investors took profits following a warning from the top U.S. infectious disease expert that premature moves to reopen the nation’s economy could lead to novel coronavirus outbreaks and set back economic recovery. |
| Trump wants California to let automaker Tesla reopen assembly plantU.S. President Donald Trump on Tuesday urged that Tesla Inc be allowed to reopen its electric vehicle assembly plant in California, joining CEO Elon Musk’s bid to defy county officials who have ordered it to remain closed. |
| U.S. reports record $738 billion budget deficit in AprilThe United States on Tuesday reported a record $738 billion budget deficit in April as an explosion in government spending and a shrinking of revenues amid the novel coronavirus pandemic pushed it deeply into the red. |
| Uber approaches GrubHub with takeover offer: sourceUber Technologies Inc is in advanced talks to buy online food delivery company GrubHub Inc in an all-stock deal, according to a person familiar with the matter. |
| U.S. attorneys general ask Amazon for data on COVID-19-linked worker deaths, infectionsA group of 13 U.S. attorneys general asked Amazon.com on Tuesday to provide data on coronavirus-linked infections and deaths among its workforce, along with evidence of the company’s compliance with paid sick leave laws. |
| Morgan Stanley pays $5 million fine to settle SEC charges it misled investing clientsA unit of Morgan Stanley agreed to pay a $5 million fine to settle U.S. Securities and Exchange Commission charges it misled retail investing clients about the costs of a “wrap fee” program, the regulator said on Tuesday. |
| U.S. federal court to consider payout suit brought by RBS whistleblowerThe U.S. Second Circuit Appeals Court will on Tuesday consider arguments by an ex-Royal Bank of Scotland employee who is suing the U.S. Justice Department and Securities and Exchange Commission for a bounty he says he is owed under a whistleblower program. |
| Montana judge upholds ruling that canceled Keystone XL pipeline permitA federal judge in Montana on Monday upheld his ruling last month that canceled an environmental permit for the long-delayed Keystone XL oil pipeline and threatened other oil and natural gas pipeline projects with delays. |
| Bitcoin, Bonds, & Bullion Bid As LA’s Extended-Lockdown Slams StocksBitcoin, Bonds, & Bullion Bid As LA’s Extended-Lockdown Slams Stocks So the overwhelming message from Fauci today was “we’re all going to die” if you even dare to re-open the economy and judging by the budget deficit charts (and coming a day after Bitcoin’s big event), it would appear that any second wave-driven lockdown will be “The Fuckening” for America… (either Dems block any Republican stimulus; or Republicans have to agree to a 100 trillion bailout of everything…which is precisely why will we get a second wave) |
| Billionaire VC Warns Fed Stimulus Risks Triggering “Deflationary Supercycle” That Could Crush Main StreetBillionaire VC Warns Fed Stimulus Risks Triggering “Deflationary Supercycle” That Could Crush Main Street Appearing for the third time in 6 weeks, Social Capital founder and former Facebook exec Chamath Palihapitiya joined the hosts of CNBC’s “Squawk Box” for an interview Tuesday morning where he warned that the Fed’s coronavirus response will create serious long-term problems for the American economy. |
| LA County Will “With All Certainty” Extend ‘Stay At Home Order’ For 3 Months: Live UpdatesLA County Will “With All Certainty” Extend ‘Stay At Home Order’ For 3 Months: Live Updates Summary: LA County will drag out reopening for 3 months Germany, France agree to open mutual border NY reports surprising jump in deaths Cali reports jump in cases, deaths NYC says more children infected with mysterious syndrome Italy, UK report latest numbers IMF to cut global outlook again Russia overtakes UK to become world’s 2nd-biggest outbreak South Korea uses surveillance tech to confirm 100 cases linked to gay bar outbreak UK finds 4/10 COVID-19 deaths linked to care homes Wuhan begins latest mass testing push China Health Commission says Wuhan cluster shows “prevention and control measures cannot be relaxed” 57k students return to school in Wuhan Moderna wins approval for expedited testing, review from FDA Aussie Treasurer tests positive as reopening continues Treasury releases details on $150 billion fund to reimburse states for ‘rona-related expenses *Â Â Â Â Â Â Â Â *Â Â Â Â Â Â Â Â Â * Update (1520ET): Los Angeles County’s stay-at-home order will likely remain in effect through July until early or even mid-August, public health director Barbara Ferrer said Tuesday. |
| One Bank Admits “This Is A Quant+FOMO+BTFD Reflexive Feedback Loop Blowing An Even Bigger Bubble”One Bank Admits “This Is A Quant+FOMO+BTFD Reflexive Feedback Loop Blowing An Even Bigger Bubble” Now that event quant signals suggest that the current 30% bounce from the March 23 low is nothing more than a bear market rally (as discussed earlier) the debate is whether policy and positioning can trump fundamentals, which according to Bank of America, “are already stretched to near historical extremes (despite near record earnings uncertainty).” Furthermore, as we discussed over the weekend, many positioning measures suggest investors remain skeptical of this rally – with the exception of retail investors who see stocks as a “generational buying moment”… |
| Consumer finance cos may axe ‘no-cost EMI’, 0 down payment plansConsumer finance cos may axe ‘no-cost EMI’, 0 down payment plansConsumer finance firms are tightening terms fearing rising credit risk amid job losses and pay cuts due to Covid-19. |
| Modi’s package among largest in the worldModi’s package among largest in the worldThe package works out to roughly 10 per cent of the GDP, making it among the most substantial in the world. |
| How India can ease virus pain, revive growthHow India can ease virus pain, revive growth India can stage a relatively rapid recovery, not merely despite, but aided by, a floundering global economy. |
| Grocery Outlet driving new customers with bargain pricing as food costs rise elsewhereGrocery Outlet’s competitive pricing is helping it gain new customers, Cowen analysts say |
| The rich are getting richer among high-yield ETFs, tooInvestors trying to front-run the Federal Reserve’s purchase of below-investment grade bond ETFs are further concentrating the market for these funds. |
| The Tell: The U.S. economy may be in for a ‘square root’-shaped recovery ” and you won’t like it any more than algebra classA small dead-cat bounce and then lower for longer is what a œsquare root implies. |
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