The Texas governor tells people to stay home as coronavirus cases increase.
New York, New Jersey and Connecticut will quarantine visitors from states hit hard by the virus.
Federal appeals court orders dismissal in the case against a former national security advisor.
CURRENT MARKET DRIVERS
Renewed coronavirus fears prompt a market selloff.
Constant changes with reopening guidelines keep whipsawing the markets.
THINGS TO LOOK FOR
Just like that, renewed fears over the expansion of the coronavirus sent the markets skidding today. The theme lately has been for the
markets to grow enthusiastic as the country reopens, stocks begin rising, and then virus fears resurface, causing the markets to tank. A
couple of weeks ago, we ran up to 27,500 on the Dow and then gave up 1,800 in a day as a reported acceleration in coronavirus cases
fueled fears of a slowdown in the reopening of the economy. This has been a concern all along after the initial coronavirus shutdown
practically occurred overnight and devastated the economy.
Negative effects from America’s sporadic reopening have not been nearly as complete. This was to be expected. Federal
expectations differed from the expectations of 50 states and a mind-boggling array of local municipalities, so is it any wonder the
reopening has been a mess? As we go through stops and starts on reopenings, the eventual turmoil will be reflected in actual data.
Once that happens, we could have a self-fulfilling prophecy because bad numbers will translate into lost confidence in the market. A
loss in confidence will erode optimism, and the market will react accordingly. This can happen quickly, and it seems we are seeing a
microcosm of this each day. We continue to teeter on a knife’s edge, and we risk doing further damage to an already wounded economy.
CONOMIC VITAL SIGNS
Volatility spiked and yields dropped today in response to the selloff.
Volatility Index: 33.84
10-year Treasury: 0.69
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