Markets are trending sideways today as traders attempt to discern the length of the economic downturn as green shoots for ending the Chinese coronarivus lockdown become visible. It is not possible to accurately model corporate earnings so the real question becomes how long the American economy stays shuttered. At time of writing the market is basically flat after having topped out earlier in the week with a strong bounce off the March lows.
In other news, the Small Business Administration is now declaring they are out of money for further disbursements under the Paycheck Protection Program. Democrats in Congress are holding up further aid.
The Small Business Administration website reads that it is “unable to accept new applications for the Paycheck Protection Program based on available appropriations funding. Similarly, we are unable to enroll new PPP lenders at this time.”
Economic data released today was horrible as expected.
Building Permits (MoM) (Mar) printed at 1.353M vs 1.3M expected.
Housing Starts (MoM) (Mar) printed at 1.216M vs 1.3M consensus estimate.
Continuing Jobless Claims (Apr 3) printed at 11.976M vs 13.5M estimate.
Philadelphia Fed Manufacturing Survey (Apr) printed at -56.6 vs -30 estimate.
Building Permits Change (Mar) were down -6.9%.
Initial Jobless Claims (Apr 10) printed at 5245k vs 5105k estimate.
Housing Starts Change (Mar) printed at -22.3%.