Don't consider investing on the long side as the "experts" suggest. Based on Greenmark 101 algorithm, the S&P 5000 index must test 2077 before the current stock liquidation phase finds a bottom.
Coronavirus cases in the U.S. surged above 40,000 Monday, as Covid-19 infections topped 366,000 worldwide. As predicted, the U.S. is accounting for more new virus cases than any other country. Senate Democrats blocked Congress a $2 trillion coronavirus stimulus package Sunday. The Federal Reserve signaled it'll buy unlimited assets to support the economy after a top Fed official said U.S. GDP could contract 50% in the second quarter.
With the stimulus bill in doubt, the Dow Jones fell sharply Monday morning, despite a premarket bounce after the Federal Reserve vowed to buy assets "in the amounts needed." The Dow Jones pared losses in volatile afternoon trading after Senate Minority Leader Chuck Schumer said a stimulus deal is close, echoing Treasury Secretary Steven Mnuchin.
Last week the Dow Jones Industrial Average and S&P 500 index suffered their worst weekly losses since 2008. Dow Jones giants Boeing (BA) and UnitedHealth (UNH) and Citigroup (C) were huge losers, but even the likes of Apple (AAPL) and Microsoft (MSFT) are struggling with the economy coming to a virtual halt.
More states are under stay-at-home orders.
Sen. Rand Paul, R-Tenn., tested positive for the coronavirus. Two more senators self-quarantined, making a total of five Republicans unavailable for any stimulus vote.
U.S. Coronavirus Cases Top 40,000
U.S. coronavirus cases climbed 7,309 so far on Monday to 40,855. The U.S. is behind only China and Italy in terms of total confirmed coronavirus cases. U.S. coronavirus deaths have climbed to 483. The U.S. added 9,339 new coronavirus cases on Sunday, far more than any other country.
New York state has 20,875 Covid-19 cases, Gov. Andrew Cuomo said Monday morning. Most of those are in New York City itself.
New York officials have been among the most vocal in warning of shortages of key medical equipment and protective gear, calling on federal aid and supplies. FEMA Director Peter Gaynor said Sunday that the federal government is prioritizing supplies to hard-hit states such as New York, Washington and California. "I think that the scenes out of New York are going to be shocking," former FDA Commissioner Scott Gottlieb said on CBS' "Face The Nation" on Sunday. "I think that the hospitals in the next two weeks are going to be at the brink of being overwhelmed."
Much of the rise in confirmed coronavirus cases in the U.S. stems from a rapid increase in Covid-19 testing.
Testing will continue to ramp up in the next several weeks, with private labs and tests rushing in. LabCorp (LH) is now able to do more than 20,000 Covid-19 tests per day. The FDA on Saturday gave emergency approval to a Cepheid Covid-19 test that produces results in 45 minutes. The test can run on over 23,000 Cepheid GeneXpert machines, including nearly 5,000 in the U.S. Cepheid is a unit of Danaher (DHR).
One bright spot: Washington state, which had the first clear outbreak in Seattle, appears to have be leveling off in terms of daily new cases even as testing has increased substantially.
Sen. Rand Paul Tests Positive
Sen. Rand Paul has tested positive for the coronavirus. Paul is the first senator, and third member of Congress, to contract Covid-19. He is not showing any symptoms but was tested due to his travel and events. He is now under quarantine. Utah GOP Sens. Mike Lee and Mitt Romney are self-quarantining after they recently had lunch with Paul.
Sen. Amy Klobuchar, D-Minn., said her husband tested positive. She has not been in contact with him for the past 14 days.