Stocks Rise Despite Concerning Expert Opinions
The Afternoon Audit
Tuesday | 4.14.2020
Signs of Pickup in China's Economy Drives US Stocks Higher
Today in the Market
US stocks finished high in the green represented by the major indices
DOW +2.39% | NASDAQ +3.95% | S&P 500 +3.06%
On The Street
Bank of America raised its price target on Netflix to $460 from $426
Cantor Fitzgerald initiated Zoom as overweight
Credit Suisse upgraded Tesla to neutral from underperform
Cantor Fitzgerald initiated Slack as overweight
Citi downgraded Deere to neutral from buy
UBS downgraded Square to neutral from buy
Morgan Stanley upgraded Workday to overweight from equal weight
Citi upgraded Wynn to buy from neutral
Earnings Season Begin
Shares of big banks such as JPMorgan Chase, Citigroup and Wells Fargo fall as firms take substantial provisions for coming loan losses
Given these are some of the first companies to report post-pandemic figures
I wouldn't be surprised if an ugly earnings season was underway
Experts Weigh in on the COVID-19 Pandemic
Recent Assertions From Credible Figures Across the Globe
Cliff Young, President of Ipsos U.S. Public Affairs:
"Those who still work out in the world are particularly concerned about the risks they are running, and those laid off are reporting increasing debt and familial conflict"
Tim Ryan, U.S. chairman and senior partner at PwC:
“The ripple effect on the supply chain is becoming better understood and it’s causing companies to realize it’ll take a lot longer to bounce back than they had otherwise anticipated”
Gita Gopinath, the IMF’s chief economist:
“It is very likely that this year the global economy will experience its worst recession since the Great Depression, surpassing that seen during the global financial crisis a decade ago"
Mark Mobius, the founding partner of Mobius Capital Partners:
“I don’t think we’re at the absolute bottom yet because the implications of this shutdown are incredible”
University of Hong Kong Epidemiologist"
"Countries run the risk of unleashing a second wave of infections of the coronavirus by lifting current restrictions on social distancing too early"
"The global economic hit from the coronavirus crisis will likely be four times worse than the financial crisis and the U.S. will see its highest unemployment rate since World War II"
The Bottom Line
Rising markets combined with concerning expert opinions imply only one certainty:
volatility is coming