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Morning Commentary

Waiting for Trump

By Charles Payne, CEO & Principal Analyst
3/11/2020 9:23 AM

Yesterday’s session was very impressive, as the market climbed off the canvass at a pivotal momentum when it was certain massive selling would occur.  The Dow rallied after losing gains at the start of trading, and unlike the other two huge days during this crisis, the buying wasn’t focused on Utilities, Real Estate and Consumer Staples.

Instead, yesterday, the big winners were Technology, Consumer Discretionary and Financials, which happened on news the administration may provide massive help.  Today, President Trump is meeting bank executives. We hope there will be news from the meeting, even for initial actions similar to those announced by health insurers at the White House yesterday.

S&P 500 Index

+4.94%

Communication Services (XLC)

+5.10%

Consumer Discretionary (XLY)

+5.53%

Consumer Staples (XLP)

+2.87%

Energy (XLE)

+4.74%

Financials (XLF)

+5.87%

Health Care (XLV)

+3.43%

Industrials (XLI)

+5.18%

Materials (XLB)

+4.06%

Real Estate (XLRE)

+4.86%

Technology (XLK)

+6.67%

Utilities (XLU)

+0.93%

 

What Industries Should Be bailed out?

Yearend cash and cash equivalent numbers below underscore the position some key industries find themselves, as everyone lines up with hat in hand for federal financial assistance.

Airlines

Cash & Equivalents (billion US dollars)

2019

2018

DAL

$2.8

$1.6

AAL

$4.0

$4.9

UAL

$4.9

$4.0

LUV

$4.1

$3.7

 

Cruise Ship Operators

Cash & Equivalents (billion US dollars)

2019

2018

CCL

$.518

$.982

RCL

$.265

$.307

NCLH

$.253

$.164

 

Oil Drillers

Cash & Equivalents (billion US dollars)

2019

2018

CHK

$.140

$.213

WLL

$.009

$.014

PXD

$.924

$1.5

CXO

$.070

$.484

 

Portfolio Approach

We added a new position in Technology yesterday.

Today’s Session

The media is taking President Trump to task for not showing up at the presser last night, as he has promised a monument financial package sooner rather than later.   It’s intriguing that President Trump has been publicly pushing Jerome Powell, but today he is getting pushed around by the stock market.   As tough as his tweets are, Powell will attest in his memoirs that nothing is more intimidating for a Fed chairman than a plunging stock market, where the world is looking for monetary policy to come to the rescue.

 


Comments
Not surprising the President is resisting the plying into the forces who want to play up the sense of panic , including most in the media and pundits , financial and political . Leave it to the experts. If he has a message , he will get it out directly to the people as always.

Alan on 3/11/2020 10:45:31 AM
We all need to stand tall with the President in this very important time. The future of our country as founded is at stake. I thought the 2008 panic bail out was a mistake, still think that, and I think blanket bailing out is wrong this time. We all know the liberals (Reps&Dems) along with the media are what is doing the most damage. I expect Trump to limit the bailouts to a targeted number of people. We shall see.

Robert Clanton on 3/11/2020 11:35:18 AM
 

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