The economic hits just keep on coming with two dismal reports being released. The first was retail sales – plunging 16.4% for the month of April. This is the worst reading ever and was well below market expectations of a decline of 12%. All categories were harshly hit, primarily driven by the lock-downs due to COVID-19. Some of the worst hit, and no surprise, were clothing and accessories, electronics, appliances, and furniture, and restaurants and food service. On the back of this data, we also have JC Penney filing for bankruptcy this evening. This is another blow to the retail sector, as well as commercial real estate, and adds to a list of other big name retailers filing for the protection. Another notable report pertains to industrial production, which collapsed by 11.2% for the month of April – also the largest monthly decline since records have been kept. On a year-over-year basis, the decline is over 15% – this kind of decline has not been seen since the GFC, the end of WWII, and the Great Depression. Nonetheless, the DOW, the NASDAQ, and S+P 500 all closed the day in the green. However, what also had a very strong performance was that of gold and silver. Are the precious metals starting to sniff out the effects of money printing, deficit spending, geopolitical uncertainties, and the realization of the true economic and financial damage that likely lies ahead? Time will tell, but it is most definitely worth the time to pay some attention to the precious metals.
This evening in the House, Nancy Pelosi’s, “HEROES Act,” was passed along party lines and will now head to the Senate where it is all but certain to be voted down. However, it is also likely that there will be another round of spending – the question will be, when, and how much does it cost? Also in Washington, this afternoon, the President announced that the US will have a vaccine ready for use by the end of this year. This blows past all previous comments that the earliest possible would be 12-18 months, which would have taken us into 2021. Nevertheless, “Operation Warp Speed,” as it is to be known, is underway to develop a vaccine in record time and the President has also made comments that the military is to administer the vaccine. We don’t like the sound of that and this is well deserving of further explanation. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Bailouts #EndTheFed #Debt #Gold #Recession #Depression #USA #COVID19