It was another day of the airline stocks being murdered while the market struggled to find optimism. The President's daily briefings are lacking optimism, rather erring on caution. We also get Gov. Andrew Coumo doing his daily “Henny Penny” impersonation about the world coming to an end.
I am still confused how New York needs 50,000 vents, when the CDC estimated the whole country needs 32,000, but that doesn't stop the well-meaning Governor from scaring people daily telling them how ill-equipped they are. This is very hard on a stock market.
Yes, it is very sad how hard New York is being hit by the coronavirus. Mayor DeBlasio and Dr. Oxtris Barbot (City Health Commissioner) made matters a mess by telling people in the city “in the city itself their risk is low, and our preparedness is high. So we are telling New Yorkers, go about your lives. Take the subway. Go out. Enjoy life. We also know that if it were likely to be transmitted causally, we would be seeing a lot more cases.”
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All of these press conferences helped eradicate the gains the SPX saw on the open. With the SPX opening higher by 11 points, the negative press was a slow and methodical drain on the markets. We made the lows at 1:15pm Chicago time with the SPX hitting 2460 (-66.54) before bouncing to close at 2488.65 (-38.25, or -1/5%).
Between the possibility of a longer quarantine that previous discussed, and higher oil prices the travel stocks wee hit again.
AAL – (American Airlines) was down 0.67 to close at 9.39 (-6.7%).
HLT – (Hilton) closed down -1.92 at 55.94 (-3.32%)
The big gainer on the day was crude. Oil had been dipping below $20 at the start of the week, but news of Trump cutting a deal with Saudi Arabia and Russia to limit production sent the futures up to $29 by Friday's close. The USO oil ETF had been as low at $4.03 earlier in the week, but closed at 5.90 on Friday. This was a 47% bounce.