Morning Commentary
Investors have a lot to weigh. There will be an avalanche of warnings releases, coupled with more economic data, and the Federal Reserve is meeting.
Big Momentum Darlings
Although all are called tech names, they run across three S&P sectors, and are ubiquitous in our daily lives. The names have had mixed reactions to earnings over the last couple of years with Microsoft the best performer in the week after posting results.
This morning all five are indicating to open higher.
Besieged Industrial Names
There has already been a torrent of news on Boeing (BA) this morning, with the big question of whether the company takes federal aide by Friday’s deadline. Bailing out the company directly and indirectly has been a thorny issue. After an initial hesitation, the commercial airline industry has received $12.4 billion from Treasury, including an additional $9.5 billion since initial tranches announced. So far 93 carriers have taken advantage.
Boeing is considered a unique company because of its size and products, and the CEO is on the record saying we will not give up equity for any government help.
Caterpillar was downgraded this morning at Morgan Stanley.
The Federal Reserve Balance sheet continues to swell, but current levels are just a drop in the bucket on where the final plateau could be, which will be far north of $10 trillion.
With all the official news on the docket, the biggest mover of the market this morning is the notion the nation is going back to work. Several states are ramping up reopening plans and others discussing ways to get the wheels of commerce turning again.
Portfolio Approach
We are going long a Consumer Discretionary this morning and reducing Cash.
Comments |
Opening up so soon could be good or it could be bad. What happens if when it opens, a new wave of cases slams the country? No one has really discussed the fallout that would occur if that happened and the resulting damage to the economy. William Brown on 4/27/2020 9:54:09 AM |
"What happens if when it opens, a new wave of cases slams the country?" - You should probably go short. Chris Nystrom on 4/27/2020 1:55:09 PM |
Boeing needs to set up a special flight academy ... specifically designed to certify pilots to fly the 737MAX. The plane is flyable, but 200 hour familial "copilots" [friends of the family or tribal associates ... there are 4000 familial / tribal / indigenous peoples ... you can look it up ] will not be capable. Boeing needs to acquire a disused air force base in the desert and apply rigorous flight instruction, ground school and simulator training to upgrade all the pilots, especially those from 3rd world countries and paid for by the banks and leasing companies. Indonesia audited the flight schools in that country and learned that too many students were getting fraudulent log book entries. Apologies for ranting, but the engineers at Boeing were replaced by accountants and there needs to be more rigorous vetting of the pilots to make up for shortcomings. Al Masetti on 4/27/2020 2:24:25 PM |
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3/28/2024 1:39 PM | Fruitful Quarter |
3/28/2024 9:50 AM | LISTEN TO THE MARKET |
3/27/2024 1:40 PM | Mostly Higher |
3/27/2024 9:32 AM | U-TURN? |
3/26/2024 1:08 PM | Everything Is Up |
3/26/2024 9:42 AM | TAPPED OUT (I HOPE YOU AT LEAST GOT A T-SHIRT) |
3/25/2024 1:33 PM | Not A Mutiny |
3/25/2024 9:35 AM | STAYING THE COURSE…BEYOND TECH |
3/22/2024 12:56 PM | Toll on Americans |
3/22/2024 9:38 AM | A TAD TIRED |
3/21/2024 1:55 PM | Building on Gains |
3/21/2024 9:30 AM | A COMFORTING FED |
3/20/2024 1:33 PM | Pivotal Moment |
3/20/2024 10:00 AM | HERE COMES THE FED |
3/19/2024 1:33 PM | Picking Up Steam |
3/19/2024 9:35 AM | RUMBLINGS IN THE BOND MARKET |
3/18/2024 1:48 PM | Mag 7 is Back |
3/18/2024 9:39 AM | THE PARTY IN SAN JOSE WILL BE LIT |
3/15/2024 1:38 PM | Realtors Settle |
3/15/2024 9:33 AM | AN UNEASY PAUSE |
3/14/2024 1:43 PM | Sticky Inflation |
3/14/2024 9:48 AM | GOING TO A GO-GO |
3/13/2024 2:16 PM | Taking a Breather |
3/13/2024 9:51 AM | ALL SO EPIC |
3/12/2024 1:42 PM | Marching Higher |
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