The thesis continues today, Technology up and Financials down. President Trump continues to advocate for negative interest rates. Airline stocks are also getting hit today.  Boeing (BA) reported that as of April 30, 2020, it had 225 order cancellations/conversions.  Total gross orders for 2020 are 49, while net orders are down 516. Adding to the airline pain was comments from Boeing’s CEO, Dave Calhoun’s comments that is was likely there would be an airline industry bankruptcy.

Oil is up as news circulates that OPEC and its allies would like to keep the existing oil cuts in place past June.  WTI is up 5.6% to $26.48 per barrel. Oil prices are up today, receiving support after Reuters reported that OPEC and its allies want to maintain existing oil cuts beyond June. WTI crude futures are currently up 5.6% to $26.48/bbl.

Five of the 11 S&P sectors are currently in the green, while the S&P has slipped into the red.

Breadth is mixed but once again there are more companies hitting 52-week highs.

Small Business Optimism

The NFIB Small Business Optimism Index fell in April to 90.9, the lowest level since the first quarter of 2013, down from 96.4 in March. However, it did beat, for what its worth, the expectations for a read of 83.  “The business impact from Covid-19, government stay-at-home orders, and mandated non-essential business closures has had a devastating impact on the small business economy,” stated the NFIB.

Sales expectations for the next six months sank 30 points to -42, the lowest reading on record. While the Uncertainty Index decreased 17 points to 75, future optimism improved, with 29% of respondents saying the recession will be short-lived and that in six months the economy would be better.

Fauci

Dr. Fauci is testifying before the Senate, albeit virtually. His candid testimony and question and answer session continues, while his commentary remains the same, it is “conceivable and possible” we will have another wave. While it’s “very likely” someone who has had Covid-19 may now be immune, there is still no way to prove it.  He is however “cautiously optimistic, that at least one of the vaccines currently being developed or in trial will work out. Fauci also stressed that we should not completely rule out that kids can contract the virus.