May 20, 2020

The day after a monster rally on Wall Street on the announcement from Moderna about the success of their vaccine, brought rumors that the results were not as good as first thought.  Citing the old stock market saying, “Sell on the rumor, buy on the fact,” is exactly what the market did yesterday as the Dow finished the day losing just more than 390 points in another volatile day of trading.

Today the market has turned its attention to surging earnings from retailers, Lowe’s in particular, which sparked a rally early this morning with the market opening more than 300 points.  And the volatility continues.

As of this week, virtually all 50 states have reopened their economy to some degree.  Recent reports have indicated that Florida and Georgia have experienced little or no increase in COVID-19 cases, while Texas may have seen an uptick in reported infections.  But the Supreme Courts of Wisconsin and Oregon have come to completely different conclusions as to the authority of their respective Governors to order shutdowns.  This battle will in no doubt rage on for quite some time.

We are paying close attention to how the states’ reopenings affects the trajectory of the recovery of their economies.  This, and getting workers back on the job, will have everything to do with the recovery of the U.S. economy as a whole.

Stay safe and healthy.