Wall Street has been riding high on optimism for the last three weeks HOPING that the Covid-19 virus outbreak subsides . . . and praying that we will go back to business as unusual.
Yet at the end of the day – it’s all about the economy.
After nearly four weeks of lockdown for 328 million Americans . . .
Economic data is beginning to reveal the true impact of Covid-19. And it is an absolute meltdown.
Retail data for March was released yesterday – showing an 8.7% drop in sales.
- Gasoline: -17%
- Department Stores: -20%
- Sporting Goods / Hobbies: -23%
- Restaurants and Bars: -27%
- Clothing Stores: -51%
In fact, the only categories posting gains were Online / Ecommerce with a 3% increase, as well as grocery stores, which saw a 27% increase as people stocked up on food and essentials.
Analysts had expected an 8% drop.
Credit Suisse says March is just the start. The firm’s economist expects that overall consumption will plunge 17.5% in the period of April through June. That would make it the single worst performance since World War II.
Now, that’s a huge problem.
Seventy percent of the U.S. GDP is from personal consumption. Plunging retail sales show that the economic impact will create a true disaster.
Right now, I’m watching corporate earnings for a signal of what’s to come. And I expect stocks will make big moves this week.
This increased volatility is creating a huge and profitable trade setup.
The Big News…
New $2 Trillion Stimulus
Republicans on Capitol Hill are starting work on another stimulus bill. This one is expected to top $2 trillion and include huge spending on infrastructure projects including 5G. Go here for the top All American 5G stocks to BUY NOW.
Americans Get Stimulus Checks This Week
Americans will begin receiving checks from the CARES Act starting this week. Adults will receive $1,200 and $500 per child. Some 60 million total deposits are expected by mid-May.
Apple Creates Covid-19 iPhone
Apple just released a new and cheaper iPhone model called the SE. It’s priced at $399. Unlike every other iPhone launch, there was no big event to reveal the new phone. The low-priced phone may have strong appeal during this economic downturn.
Trump Pulls W.H.O. Funding
President Trump pulled all funding from the World Health Organization. The president is upset at how the WHO failed to respond to the Covid-19 virus and stop its spread.
Governor Cuomo Requires New Yorkers to Wear Masks
New York’s governor is requiring people to wear masks in public to guard against Covid-19 if they are unable to stay six feet away from other people. That means New Yorkers will have to wear a mask when in public places such as stores.
Internet Usage Surges 70%: How to Profit
Reports indicate that internet usage has more than doubled amid the Covid-19 epidemic. That’s pushing high speed broadband to the limits. Wireless companies plan to spend an extra $4.5 billion upgrading to 5G. Go here for the biggest winners.
The Coronavirus Numbers
Here are the numbers from Thursday at 9 a.m. ET.
- 2,100,970 Infected with Covid-19 worldwide
- 136,048 Deaths
- 644,417 Infected in the U.S.
- 28,559 Deaths in the U.S.
The outbreak will crush U.S. corporations and their earnings. Earnings reports start this week.
Don’t try to trade earnings season. Just use these quick “Overnight Trades” and you could WIN +80% of your trades. Go here for urgent details.
After a robust rally . . .
Stocks gave up some of those gains on Wednesday. Major U.S. indices are posting losses of 2%. Stocks are now down around 18% from the all-time highs.
The combination of weak earnings and poor economic data is weighing on stock prices.
Bank of America (NYSE: BAC) reported a 45% drop in quarterly profit. The company also set aside $3.6 billion for loan loss reserves. The results were similar to those seen on Tuesday from JP Morgan and Wells Fargo.
It’s almost impossible to predict earnings. And it is even harder to know where stock prices will go after the results are released.
Smart traders won’t try to predict earnings season results.
Instead, they could be WINNING 80% of their “Overnight Trades” in less than 24 hours.
This proven system could have turned $5k into over $1.1 million – in less than three years.
Yours in Health & Wealth,