Market opens higher to begin the busiest week of Earnings Season. It will be dominated by reports from the Tech Titans and Health Care. The Fed meets too. It’s going to be a huge week for the Market. Global markets were higher overnight. Optimism continues to be driven by reopening efforts as southern US states started the reopening last week, and hard-hit areas like New York revealed plans for a phased restart of economic activity in mid-May. Italy, France, and Spain are set to follow other European nations tentatively reopening. With coronavirus infection and death rates continuing to moderate in Europe and the US, the focus is increasingly on the mounting economic toll of the shutdowns. Absent a vaccine, there are concerns about future snapback of restrictions, cautious consumer behavior, bankruptcies/defaults, elevated unemployment and bailout fatigue will prolong the downturn and likely lead to a W-shaped recovery. Oil is getting clobbered again. Diamond Offshore filed bankruptcy. More are coming. Apple is reportedly pushing out the production of its 5G phones. We will find out more when they report this week. Germany is providing some financial support to the cruise lines. Stocks have gone sideways for two weeks, hanging around the high end of the range. Something’s gotta give. We will soon find out how far the Economy contracted in Q1. It is much worse in Q2. Hang on tight.
Have a great morning,
Mike Frazier
