Author: BlackMask Financial

Stock futures sank sharply Thursday morning as investors considered fast-dimming prospects for fiscal stimulus before the U.S. election and a host of new virus-related restrictions in Europe. Traders continue to fixate on whether a stimulus deal of any size will transpire within the next three weeks, even as recent comments from lawmakers have overwhelmingly dampened hopes. Treasury Secretary Steven Mnuchin, speaking at the Milken Institute Global Conference on Wednesday, said that “getting something done before the election and executing on that would be difficult, just given where we are in the level of details,” referring to talks with Democratic lawmakers. He and House Speaker Nancy Pelosi are set to speak again on Thursday to discuss stimulus measures, after having spoken Wednesday morning. The three major indices hit session lows on Wednesday in the aftermath of Mnuchin’s remarks, with more relief to individuals and businesses viewed by many as a much-needed propellant in keeping economic activity on the upswing during the pandemic. Overseas, countries and major cities across Europe imposed stricter orders to try and rein in a jump in new coronavirus cases. In London starting this weekend, individuals will be restricted from mixing with other households indoors, and in France, residents of Paris and eight other cities will be subject to nighttime curfews beginning Saturday. A mixed set of corporate earnings this week has so far done little to buoy sentiment, with a number of big banks having reported results that underwhelmed against expectations. Wells Fargo (WFC) reported quarterly profit that was less than half that of the same period last year, and Bank of America (BAC) posted a drop in revenue and weaker sales and trading results than reported from major peers including JPMorgan Chase (JPM) and Citigroup (C). Most big bank executives so far this week have suggested the worst of the pandemic’s impact on results may be behind them after an especially tough second quarter, though they acknowledged the distance still left to overcome in the economic recovery. Nick Note: My bet is the future driver of the markets will not be stimulus, not the elections, But the second wave of the virus. Their back! The genetically modified second wave attack bio weapon attack from China Timed for Thanksgiving and Christmas will devastate the economy. And kick over the edge a hell of a lot of very very marginal businesses.

Dr. Anthony Fauci, the nation’s top infectious disease expert, tells CBS Evening News anchor and managing editor Norah O’Donnell that Americans need to “double down” on mask-wearing and social distancing to help control a surge in new coronavirus cases. He also spoke about President Trump’s recovery from COVID-19, progress towards a vaccine, and how the pandemic will affect this year’s holiday gatherings. Watch the full interview.

The World Health Organization’s European office says that the soaring number of Covid-19 cases in Europe has caused “great concern”, but said the situation was still better than the peaks in April. “The evolving epidemiological situation in Europe raises great concern. Daily numbers of cases are up, hospital admissions are up,” the WHO’s Regional Director for Europe Hans Kluge told a press conference. “Covid is now the fifth leading cause of deaths and the bar of a 1,000 deaths per day has now been reached.” More European countries have decided to reimpose nationwide lockdown measures to counter fast-rising coronavirus infection rates. Northern Ireland announced Wednesday that it would become the first among the United Kingdom’s four nations to try a so-called circuit breaker lockdown. The tactic will see pubs and restaurants closed for all but takeout service, all schools closed and many other businesses greatly restricted for a short, defined period to try and break the cycle of spiraling infections. Nick Note: You survived the First Wave. Do not let your guard down because the Second Wave is coming. From China with love!. This next attack from China is another genetically modified strain. Manipulated to  generate even smaller particles and spread as an highly ineffective aerosol. And its protein shell is sufficiently changed as to render vaccine under development useless And And able to reinfect as we are seeing people that have antibodies to the first wave virus.

https://youtu.be/UtKy1pkAjkw

Melania Trump said Wednesday that after an initial negative test, 14-year-old Barron Trump tested positive for COVID-19. “It was two weeks ago when I received the diagnosis that so many Americans across our country and the world had already received—I tested positive for COVID-19,” the first lady said in a statement. “To make matters worse, my husband, and our nation’s Commander-in-Chief, received the same news.” She continued: “Naturally my mind went immediately to our son. To our great relief he tested negative, but again, as so many parents have thought over the past several months, I couldn’t help but think “what about tomorrow or the next day?” My fear came true when he was tested again and it came up positive. Luckily he is a strong teenager and exhibited no symptoms. In one way I was glad the three of us went through this at the same time so we could take care of one another and spend time together. He has since tested negative.” Stephanie Grisham, the first lady’s chief of staff and spokeswoman, told USA TODAY on Oct. 2 that Barron “has tested negative, and all precautions are being taken to ensure he’s kept safe and healthy.” Nick Note: this story is far from over….

After showing a lack of direction earlier in the session, stocks have come under pressure in recent trading on Wednesday. The major averages have pulled back firmly into negative territory after bouncing back and forth across the unchanged line for much of the day. Currently, the Dow is down 142.86 points or 0.5 percent at 28,536.95, the Nasdaq is down 96.99 points or 0.8 percent at 11,766.91 and the S&P 500 is down 21.16 points or 0.6 percent at 3,490.77. The weakness that has emerged on Wall Street comes after Treasury Secretary Steven Mnuchin said getting something done on a new stimulus bill before the election “would be difficult.” “We continue to make progress on certain issues, but on certain issues we continue to be far apart,” Mnuchin said about negotiations with House Speaker Nancy Pelosi in remarks to the Milken Institute Global Conference. Ahead of Mnuchin’s remarks, Pelosi’s deputy chief of staff Drew Hammill said the Speaker and Mnuchin had a “productive” phone call earlier this morning. “One major area of disagreement continues to be that the White House lacks an understanding of the need for a national strategic testing plan,” Hammill said on Twitter. He added, “The Speaker believes we must reopen our economy & schools safely & soon, & scientists agree we must have a strategic testing plan.” Hammill noted Pelsoi and Mnuchin would speak again on Thursday, although the Treasury Secretary’s comments have partly offset optimism the negotiations will bear fruit. The choppy trading seen earlier in the day came as traders digested a mixed batch of earnings news ahead of the release of a flood of corporate results in the comings days. Shares of Bank of America (BAC) have come under pressure after the financial giant reported third quarter earnings that beat analyst estimates but on weaker than expected revenues. Banking giant Wells Fargo (WFC) has also shown a notable move to the downside after reporting weaker than expected third quarter earnings, although its revenues came in above estimates. On the other hand, shares of Goldman Sachs (GS) are seeing modest strength after the investment bank reported third quarter results that blew past analyst estimates. U.S. Bancorp (USB) has also moved higher after the bank holding company reported third quarter results that exceeded analyst estimates on both the top and bottom lines. Retail stocks have come under pressure over the course of the session, dragging the Dow Jones U.S. Retail Index down by 1.4 percent. The index is pulling back after reaching a record intraday high during trading on Tuesday. Considerable weakness is also visible among telecom stocks, as reflected by the 1.3 percent drop by the NYSE Arca North American Telecom Index. Commercial real estate and software stocks have also moved to the downside, while energy stocks continue to see significant strength amid an increase by the price of crude oil. Crude for November delivery is climbing $0.63 to $40.83 a barrel. Reflecting the strength in the sector, the Philadelphia Oil Service Index has surged up by 3.7 percent, while the NYSE Arca Natural Gas Index is up by 2.3 percent and the NYSE Arca Oil Index is up by 1.9 percent. Airline stocks also continue to see notable strength on the day, with the NYSE Arca Airline Index climbing by 1.7 percent.

President Donald Trump is down in the polls, running out of time, and facing a resurgent coronavirus across the United States. Yet seemingly headed for defeat, he is doing nothing to change course. Proud of his status as a non-politician who won the White House in his first shot, Trump brushes off polls ahead of November 3, preferring nostalgic reminiscences about his 2016 upset. There’s no question that he still has the raw energy on stage of the candidate who surprised everyone to beat Hillary Clinton. This week he began a punishing cycle of rallies, his first since recovering from hospitalization for Covid-19 at the start of October. In Florida on Monday and Pennsylvania on Tuesday, he entertained large, enthusiastic crowds. He even did a little boogie on stage to the thumping rhythm of the Village People song “YMCA,” perhaps buoyed by the lyrics of “I said, young man, pick yourself off the ground.” On Tuesday in Johnstown, a small Pennsylvania town, he delivered his now well-known speech in the cold autumn air, warning apocalyptically of Democrats turning the United States into a “large-scale version of Venezuela.” Just as he used to mock and insult Clinton, he mocked and insulted challenger Joe Biden. “He has no idea what he is saying! How the hell do you lose to a guy like this?” he asked. “He’s shot,” Trump said. “In his best of years, he was considered a dumb guy.” The biggest issue of the day — Covid-19 and its more than 215,000 victims in the United States — was largely brushed off with typical Trump optimism. He’d got over the virus himself, he said, and “the vaccines are coming soon.” About his plans for a new four-year term, there was almost nothing other than the vague, patriotic climax to his stump speech which the crowds now know almost by heart. “The best is yet to come,” he intoned. “We are going to keep on fighting, and we are going to keep on winning, wining, winning.” Trump often contrasts his enthusiastic events with the quieter, much smaller versions on the Biden campaign trail. But polls show Biden is more popular and the Democrat has chosen a low-key campaign in keeping with his message of responsibility during the pandemic. When not on stage, Trump is likely to be on Twitter, where he openly vents frustration at the situation. Frequently blaming the media and “fake” polls for his image, he even lashes out increasingly at Fox News, although the network gives him a frequent platform with its friendly star presenters. When he’s not attacking journalists, he’s often winding deep through right-wing conspiracy theories, in large part aimed at his predecessor Barack Obama or Clinton. The false and convoluted accusations come in such volume that they often go almost ignored. David Axelrod, a former Obama advisor, wondered on Twitter if Trump has “turned his own political suicide into a surreal reality show.” With 20 days to go there could still be game-changing surprises, just as there were in 2016. But right now, Republicans are increasingly worried that Biden will lead a Democratic wave — or even tsunami. Republicans in the House of Representatives and Senate are showing signs of trying to keep their distance from the president, even if he still exerts tremendous influence over the activist right of the party. When he came down with Covid-19, there was talk that perhaps now he’d seize the unique opportunity to become a more inclusive president. After months of dismissing the virus would he pivot to a show of empathy for the pain felt by ordinary Americans? That didn’t happen. Instead, he ended up demonstrating the gulf between regular voters and the elite when it comes to health care and the ability to confront the potentially deadly illness. “One great thing about being president, if you’re not feeling 100 percent, you have more doctors than you thought existed in the world. I was surrounded with like 14 of them,” he told Tuesday’s rally.  Nick Note: Trump is down…. but do not be to quick to count him out. Always remember the election is not decided until he and his army of lawyers decide its over. Prepare yourself for the Supreme Court or militias to decide the results of this election!