Miami Beach under state of emergency as Florida reaches 2M COVID cases
March 20 (UPI) — The city of Miami Beach declared a state of emergency Saturday over concern about spring break crowds spreading COVID-19 Saturday and the Idaho legislature moved to a recess due to an outbreak among lawmakers. Miami Beach Mayor Dan Gelber announced an 8 p.m. curfew for the South Beach entertainment district during a Saturday-afternoon news conference and said shore-bound traffic on the city’s causeways would be shuttered. Both measures will be in effect for at least 72 hours, but officials may extend the state of emergency. “As we hit the peak of the peak of spring break, we are quite simply overwhelmed,” City Manager Raul Aguila said, who also said that on Friday night “you couldn’t see pavement and you couldn’t see grass” due to crowding in the area. Nick Note: Its pretty apparent mankind cannot bunch up. These crowd events are where the spreading is originating from. Get vaccinated but do not let your guard down. Theaters, concerts, sporting events and crowds should be avoided. If you are in a mixed environment (vaccinated and unvaccinated) where your ugly mask. The good news is among family and friends who are vaccinated (and are not going to risky environments ) you are probably safe. We are watching the genetic mutations (variants) closely. So far none of them in wide circulation pose a significant threat to vaccinated individuals. That will change and we will have to get a booster shot. Think of it as the yearly flue vaccine….
Fed Will Need to Buy Bonds as Stimulus Boosts Yields, Dalio Says
The U.S. Federal Reserve will need to buy more bonds as an oversupply of Treasuries drives up yields, said Ray Dalio, founder of Bridgewater Associates. The recent fiscal stimulus announced by the Biden administration will result in more bond sales to finance the spending, worsening the “supply-demand problem for the bonds, which will exert upward pressure on rates,” Dalio said Saturday on a panel at the China Development Forum, an annual conference hosted by the Chinese government. That will “prompt the Federal Reserve to have to buy more, which will exhibit downward pressure on the dollar,” he said. Nick Note: The fed in not Not NOT going to raise rates. And their is no No NO inflation… Just the opposite we are in a massive deflation and the only way out is negative interest rates. So what is going on. Pretty simple we are being tortured by the hedge funds. Reality is massive buying of stocks and stock funds are occurring as we speak. And the Algo guys are just taking the market the opposite way. This squeeze will not last much longer….
Pelosi Kicks Off Infrastructure Debate, Teases ‘Big, Bold, and Transformational’ Package
House Speaker Nancy Pelosi (D-Calif.) said Friday she has directed key Democratic lawmakers to work with Republicans on drafting the next big legislative push from Congress—the much-anticipated infrastructure package. Pelosi said it would be “big, bold, and transformational” but it is also drawing scrutiny on how it will be paid for. Pelosi made the announcement in a statement infused with hope for bipartisanship, which fell short in the American Rescue Plan. Democrats passed the $1.9 trillion package along strictly partisan lines, with Republicans denouncing it as a “liberal wish-list” that was packed with non-pandemic related spending. “Building our transportation system has long been bipartisan,” Pelosi said. “It is our hope that spirit will prevail as we address other critical needs in energy and broadband, education and housing, water systems and other priorities.” Fresh off the American Rescue Plan clearing the Senate through a budget reconciliation process that let Democrats avoid having to get any Republican buy-in, Democrats are anxious to get some members of the GOP on board, both to satisfy optics and to avoid taking the drastic step of removing the filibuster.
A big question mark remains in how to pay for the massive boost in spending that the infrastructure package—which Pelosi called “bid, bold and transformational”—would surely entail. Concerns about the topline cost and competing visions for how to raise the money have prevented Congress from approving a big infrastructure package for more than a decade.
So far, Democrats have been careful to avoid putting a price tag on the initiative, which is rumored to be worth at least $2 trillion. Rep. John Garamendi (D-Calif.), in an interview with the Sacramento Bee, said that Biden is considering raising taxes as a way to pay for the infrastructure plan—including an excise tax on fuel, some form of a user fee for electric vehicles on highways, and a carbon tax. Garamendi did not provide specifics on taxes, nor on the overall cost of the package. “No price tag right now, because we’re going at this from the bottom up,” Garamendi told the outlet. “We’ll say, ‘what’s the cost of broadband, what’s the cost of repairing bridges?’ and go from there.” Pelosi, in her Friday statement, said she hoped the measures will address transportation as well as “other critical needs in energy and broadband, education and housing, water systems, and other priorities.” During his presidential campaign, Biden pledged to invest $2 trillion in fixing highways, bridges, and airports; building climate-resilient homes; wiring cities for broadband internet; and encouraging the manufacturing of fuel-efficient cars and installing electric vehicle charging stations. Nick Note: the infastructure rescue is in essence another happy check of 3 trillion dollars. They will get something through.
Money flows into U.S. equity funds climb to a five-week high: Lipper
March 19 (Reuters) – Investment flows into U.S. equity funds jumped to a five-week high in the week ended March 17, buoyed by optimism over a massive stimulus package and on expectations that the Federal Reserve’s monetary policy stance would remain dovish.
U.S. equity mutual funds pocketed a net inflow of $20.1 billion in the week, which marked a sixth straight week of net buying, data from Refinitiv Lipper showed.
The inflows were led by U.S. small cap funds and mid-cap funds, seeing net purchases of $3.6 billion and $2.1 billion respectively. On the other hand, large-cap funds had an inflow of just $251 million. Among sector funds, investors turned net buyers of tech funds this week, purchasing $832 million, as tech stocks appeared attractive at lower valuations after witnessing sharp selling in the prior weeks. Investors were sanguine ahead of a two-day Fed policy meeting at which the central bank signalled its intent to keep rates near zero until at least 2024, also predicting a fast economic recovery from the pandemic. However, U.S. stocks tumbled on Friday, with banks leading the way after the Fed let expire a temporary capital buffer relief put in place to ease a pandemic-driven stress in the funding mark. Meanwhile, investors bought $9.72 billion in U.S. bond funds in the week, compared with $1.32 billion in the preceding week. U.S. Taxable bond funds had an inflow of $7.9 billion, while U.S. municipal funds saw an inflow of $9.3 billion. Investors turned net buyers of U.S. High yield funds, buying $260 million, after dumping $5.5. billion in the last week. Nick Note: First i heard dueling banjos and then a flash of light ripped across my computer. and then the CFD’s coming off a 12700 low and shooting up to the sky in my dream. I am sorry i could not help myself…. The idea of a bunch of normal folks screwing wall street city slickers investment funds in the ass overwhelmed me!
US economic recovery far from complete – Powell
Washington — The coronavirus pandemic inflicted a “cruel and uneven toll on lives and livelihoods” across the United States, head of the Federal Reserve Jerome Powell (pictured) told the Wall Street Journal on Friday. The official stated that the central bank and the government acted together to limit the long-term effects of the “unprecedented” downturn, with more than half of the initial job losses being recovered. The arrival of COVID-19 vaccines has also helped “brighten” the economic outlook, he added.
“But the recovery is far from complete, so at the Fed we will continue to provide the economy with the support that it needs for as long as it takes,” Powell concluded.
“The economic recovery remains uneven and far from complete, and the path ahead is highly uncertain,” Powell said in written testimony to the Senate Banking Committee. Powell’s comments are in contrast to the increasing optimism among many analysts that the economy will grow rapidly later this year. That outlook has also raised concerns about a potential surge in inflation and fueled a sharp increase in longer-term interest rates this year. Many economists say they think the Fed’s continued low rates, further government financial aid and progress in combating the viral pandemic could create a mini-economic boom as soon as this summer. “Mr. Powell presumably wants to try to persuade markets that a strengthening economy does not necessarily mean that rates have to rise,” Ian Shepherdson, chief economist with Pantheon Macroeconomics, told investors in a note. “Good luck with that when the post-Covid surge in activity become clear.” Financial markets fell modestly in morning trade, with the S&P 500 and Dow stock indexes both down less than 1% and the tech-heavy Nasdaq down 242 points, or 1.8%.Powell acknowledged the potential for a healthier economy. But he stressed the challenges caused by the pandemic, especially for unemployed Americans. Nick Note: do not let the hedge funds shit you. Rates are going no where and certainly not enough for the fed to take the pedal off the metal. Get ready for the next UP leg of the greatest bull market ever. Interest rates on the short side are as close to zero as you can get. And as long as you stay low, have a economic recover and happy checks out the ass. Its zoom zoom zoom. And you are going to love this next bit…. Stimulus is far from over…… Comrade!
Futures Signal Tech Rebound
(Bloomberg) — Nasdaq 100 futures climbed and Treasury yields fell, signaling a rebound may be in store for technology stocks after Thursday’s selloff sparked by rising inflation bets. Contracts on the S&P 500 and Dow Jones Industrial Average also edged higher after U.S. shares slid from a record. The yield on the 10-year Treasury benchmark slipped back below 1.7%, a threshold it hadn’t breached since January 2020, and the dollar was steady. WTI crude oil held above $60 a barrel after a 7% plunge. A calmer tone is ending a volatile week in which Federal Reserve Chair Jerome Powell fanned inflation fears by messaging he’s willing to run the economy hot to help it recover from the fallout of Covid-19, and he’s not unduly concerned by rising yields “Economic recovery is on its way and we have central banks around the world very committed to easy monetary policy,” said Jun Bei Liu, portfolio manager at Tribeca Investment Partners, who sees value stocks benefiting. “Fundamentals of the equity market are looking very strong.” Meanwhile, the Stoxx Europe 600 index declined, led by banks and retailers, while bond yields across the region retreated. China’s CSI 300 share gauge slumped as chilly U.S.-China talks soured the mood, while Japan’s Topix rallied and the Nikkei 225 sank after the Bank of Japan said it will focus purchases of exchange-traded funds on the former gauge. France announced a lockdown of areas including Paris to fight the pandemic, casting a cloud over Europe’s outlook amid an uneven vaccine roll out even as the European Central Bank signaled continued monetary support. Traders were bracing for quadruple witching Friday, a major expiration of options and futures contracts that can exacerbate swings in asset prices. Elsewhere, a number of European nations will start using AstraZeneca Plc’s Covid-19 vaccine again after Europe’s drug regulator declared it safe. These are some of the moves in markets as of 9:49 a.m. in London: S&P 500 futures added 0.3%, after the benchmark closed down 1.5%.Nasdaq 100 Index futures rose 0.7%. The index fell 3.1%. The Stoxx Europe 600 index dropped 0.3%.The MSCI Asia Pacific index fell 0.7%.The MSCI Emerging Markets index retreated 1%. The Bloomberg Dollar Spot Index dipped 0.1%.The euro slipped 0.1% to $1.1902.The yen was at 108.78 per dollar, up 0.1%.The British pound was little changed at $1.3926. BondsThe yield on 10-year Treasuries dipped two basis points to 1.69%.Germany’s 10-year yield fell four basis points to -0.305%.The U.K. 10-year yield dropped five basis points to 0.827%.
Investors pour record money into equities even as bond yields rise: BofA
Fed Chair Powell to give speech on Monday, testify Tuesday and Wednesday
(Reuters) – Federal Reserve Chair Jerome Powell is scheduled to speak Monday at a Bank for International Settlements conference on innovation in the digital age, the U.S. central bank said on Thursday. On Tuesday, Powell will testify before the House of Representatives Financial Services Committee, and on Wednesday he will testify before the Senate Banking Committee, on the Coronavirus Aid, Relief, and Economic Security Act, the Fed said. The appearances come after the Fed signaled Wednesday that it will hold rates at their current near-zero level through 2023, even as policymakers boosted their forecasts for economic growth and inflation. Nick Note: I want to be clear here. Hedge funds are short the US stock market and taking a assing. They are spinning the inflation HYPE like i have ever seen before. Everyone who know this game know that a reflating is a spot even reflecting prices adjusting and initial over demand as the supply pipelines fill again. THEIR IS NO INFLATION AND THEIR WILL NOT BE ANY. Their is no more bullish event for a stock market then a economic boom. PENT UP DEMAND and a record savings rate will create a post war kind of boom and stock market rally like never seen before. I hope you join me in the greatest rally ever…… Make no mistake this coming boom will end in the biggest bust ever.. they always do. .. And be warned it will come like a thief in the night!
Wall Street ends sharply lower, hit by bond yields and COVID-19 worries
(Reuters) – Wall Street ended sharply lower on Thursday, with the Nasdaq tumbling 3%, hit by rising Treasury yields and fresh worries about the coronavirus pandemic in Europe. Losses in U.S. stocks accelerated after France’s prime minister imposed a month-long lockdown on Paris and several other regions due to the health crisis. It was the Nasdaq’s steepest one-day drop since Feb. 25. The S&P 500 energy sector index tumbled 4.7% as oil prices fell, in part due to worries about rising COVID-19 cases in Europe. “That last hit was from news of the Paris lockdown. It wasn’t received that well,” said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey. “Here in the United States, we anticipate this big reopening and the virus is looking good, but we are not looking outside of the U.S., and it’s not all good.” The Russell 1000 value index, which is heavily comprised of cyclical stocks such as financials and energy, lost 0.6%, while the Russell 1000 growth index, which includes technology stocks, dropped more than 2%. The yield on the benchmark 10-year Treasuries crossed 1.75% to hit a 14-month high a day after the Fed projected the strongest growth in nearly 40 years as the COVID-19 crisis winds down. The Fed also repeated its pledge to keep its target interest rate near zero for years to come.. “The Fed just saying they are not going to raise rates until 2023 really means nothing,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. “The Fed is on the sidelines, but if bond yields keep going up, that is what really hurts the economy.” Apple Inc and Amazon.com Inc both dropped more than 3%. Tech and other growth stocks are particularly sensitive to rising yields because their value rests heavily on earnings far into the future, which are discounted more deeply when bond yields rise. A recent $1.9 trillion spending stimulus sparked fears of rising inflation and contributed to the jump in longer-end Treasury yields. Underscoring the staggered recovery in the labor market, data showed the number of Americans filing for jobless benefits unexpectedly rose last week. A separate report indicated the Philly Fed business index jumped more than expected, to its highest level since 1973. The Dow Jones Industrial Average fell 0.46% to end at 32,862.3 points, while the S&P 500 lost 1.48% to 3,915.47. The Nasdaq Composite dropped 3.02% to 13,116.17. The S&P 500 and the Dow both closed at record highs on Wednesday. Accenture rose 1% after the IT consulting firm raised its full-year revenue forecast and reported second-quarter revenue above analysts’ estimates, as more businesses used its digital services to shift operations to the cloud. Dollar General Corp dropped 4.65% after the retailer forecast annual same-store sales and profit below estimates, indicating that a pandemic-fueled rush for lower-priced goods may be waning faster than expected. AMC Entertainment climbed more than 3% after the movie theater operator said it would have 98% of its U.S. locations open from Friday. Declining issues outnumbered advancing ones on the NYSE by a 3.69-to-1 ratio; on Nasdaq, a 3.42-to-1 ratio favored decliners. The S&P 500 posted 85 new 52-week highs and no new lows; the Nasdaq Composite recorded 213 new highs and 28 new lows. Volume on U.S. exchanges was 12.8 billion shares, compared with the 14.2 billion average for the full session over the last 20 trading days. Nick Note: Forget about it. Today’s market is nothing. Stocks are getting ready to roar back to significant new highs…