S&P 500 (Index: SPX) are slashing both earnings and dividends on net, and yet, the S&P 500 managed to rise during the trading week ending on Friday, 8 May 2020, recovering much of the ground it lost in the latter part of the last week.
Perhaps more remarkably, it did so while tracking closely with the centerline of the redzone forecast range as presented on the alternative futures spaghetti forecast chart based on the dividend futures-based model over the last several weeks, which confirms that what is happening to stock prices in the upside down market the Fed has created since 13 April 2020 has been predictable.
How long that might continue is anyone's guess, because it is contingent on how long the Fed can sustain the upside down market, which has become an actively asked question among multiple market analysts.
Meanwhile, here are the more notable headlines we tagged for their market-moving potential in today's upside down market.
Monday, 4 May 2020
- Inside the U.S. economy:
- Bigger trouble developing all over, especially in the Eurozone:
- Recovery plans taking shape:
- New York Fed turns to Magic 8-Ball for forecast:
- Wall Street snaps two-day slump on lift from tech titans
Tuesday, 5 May 2020
- Bigger trouble developing in the Eurozone, Fed minion weighs in:
- ECB minions got some 'splainin' to do:
- Fed minions flood the zone to spread hope, cheer, and confidence:
- Fed's Evans says 'reasonable' to expect U.S. growth in second half of 2020
- Bullard: U.S. faces new problems if pandemic, shutdown, persist to 2nd half of year
- Fed's Bostic: Pace of U.S. economic recovery will vary across nation
- Fed's Clarida says U.S. unemployment could surge to worst level in decades
- Fed's Brainard: virus crisis demands broad, creative response
- Wall Street rises as lockdowns ease, healthcare shares jump
Wednesday, 6 May 2020
- Coronavirus pandemic continues to roil U.S. economy:
- Even bigger trouble developing in the Eurozone:
- Bigger trouble being felt in China:
- Fed minions consider the economy, what the Fed will buy and what it won't:
- Fed's Bullard: Drop in U.S. payrolls 'not a surprise' given shutdowns - CNBC
- Fed's Barkin: Best 'stimulus' would be consistency about reopening protocols
- Fed lending program not for insolvent oil drillers, Kaplan says
- As central banks break the junk debt barrier, investors will follow
- U.S. Treasury launches 20-year bond to help finance record borrowing
- S&P 500, Dow drop as financial sector declines counter tech gains
Thursday, 7 May 2020
- Oil bounces on China exports growth:
- Bigger trouble still developing all over:
- ECB minions thump chests after legality of policies challenged:
- Fed minions contemplating economic recovery, damage, negative interest rates:
- Wall Street gets PayPal lift as Nasdaq wipes out 2020 declines
Friday, 8 May 2020
- Coronavirus deals U.S. job losses of 20.5 million, historic unemployment rate in April
- Bigger trouble developing in Canada, Mexico:
- Bigger stimulus ever so slowly developing in the Eurozone, as bureaucratic turf wars among EU, ECB minions fracture response:
- EU aiming to agree first part of coronavirus economic rescue, but work unfinished
- Germany's Scholz expects final agreement on ESM credit line for virus-hit countries
- Top EU court says it alone decides if EU bodies are breaking bloc's rules
- EU project at stake if recovery fund not agreed soon, Gentiloni says
- Ban on dividends, share buybacks for bailed-out EU firms
- Fed minions pondering negative rates, U.S. bank solvency:
- Next phase of U.S. fiscal stimulus on slower track following March-April binge:
- Wall Street jumps as historic job losses fewer than feared
Need more context to go with the past week in market history? Barry Ritholtz has more of what he found notable in the week's markets and economy-related news, broken down into the categories of positives and negatives.
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