E US Stock Market Weekly Update April 20- April 24, 2020

All of the major stock indexes fell this week ending on April 24, 2020, and a turmoil in the oil market was the main event to focus on, as on Monday, April 20, 2020, the oil futures contract for West Texas Intermediate crude oil, which was due to expire the following day, closed at  -$37.63 per barrel, and was the first time that oil prices turned negative.

Key economic data released during the week showed a continuing weakness in the US job market. Another 4.4 million Americans filed jobless claims in the week ended April 18, and this made the five-week total to more than 26 million. Another $484 billion spending bill passed by the House of Representatives acted as a support for the investing sentiment, and the stock market now seems to weigh on bad news somehow like good news. What I mean is that the number of jobless claims marked the third consecutive week of declines, a trend we mentioned in our previous weekly update.

Another trend worth mentioning is that the VIX index on Friday, April 24, 2020, closed at 35.93-5.45 (-13.17%), and at the lowest level for the week. This is important because a sustained decline of the VIX index will make the stock market more investable.

The United States Existing Home Sales

“Sales of previously owned houses in the US sank 8.5 percent from the previous month to a seasonally adjusted annual rate of 5.27 million units in March of 2020, slightly below market expectations of 5.3 million. It is the biggest drop since November of 2015 but the lowest rate since April of 2019 only. The data includes contracts signed in January and February before the coronavirus took a toll on the economy.”

Source: Trading Economics

On Tuesday, April 21, the USD Existing Home Sales for March 2020 came in at 5.27 million, missing the expectations of 5.30 million and having a decline of 8.5% as mentioned above. The housing market is another key financial market to monitor for the US economy and its growth. Why?

“Housing’s combined contribution to GDP generally averages 15-18%, and occurs in two basic ways:

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Disclosure: I have no position in any stock mentioned

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