The stock market had a big day last week after several days of being in the toilet. It’s a bear market now. Investors want to protect their assets, but in a financial environment that keeps the experts scratching their heads, it’s hard to know where to put those assets because the 10-year Treasury note yield dropped below 1%, and that’s a recording-breaking feat.
The Feds upped the ante in the repo market to keep that market stable as they try to stop economic erosion that could set a record in the financial history books. Congress has a bill in the works to help workers who can’t work due to the COVID-19 pandemic. The bill is on its way to the senate. Political analysts claim the Republicans would be stupid if they started shooting holes in the bill. But Mr. Trump promised he would sign the bill, even though his payroll tax cut is not part of the legislation.
Huawei dropped the price of its Pro40 smartphone in order to cut their loss in market share from the Trump blacklisting. The Pro40 series competes with the Samsung Galaxy S20 and Apple’s iPhone 11. Huawei dropped the price on the Pro40 to $943. That price undercuts the S20 by $50. But the big question in the minds of Huawei executives is a $50 difference enough compensation for not having Google apps? The Pro40 comes with Huawei’s Harmony OS.
Apple decided to close all its retail stores except the stores in China until the end of March. Apple took a thrashing when the coronavirus first hit China. The company had factory production issues and retail store disruptions. South Korea got control of the coronavirus early, so Samsung’s production didn’t take a serious virus hit the way Apple’s did in February.
Italy turned into a ghost town, and Spain is on its way to ghost town status. The U.S. still doesn’t know how many people have COVID-19 due to the government’s lack of a sense of urgency when Trump saw what China had to do to control the spread.
President Trump took the COVID-19 test, and it came back negative, according to the president. But Trump’s critics claim it’s hard to believe the president. Trump had close encounters with several people with the virus, so health officials claim he may not be out of the coronavirus woods yet.