Raining on Wall Street’s parade today, deaths from coronavirus rose from two to six cases in the U.S., just when the stock market shrugged off fears, rocketing the Dow Jones Industrial Average up 1,293.96 or 5.09% in the biggest one-day gain in U.S. history. Short-sellers cleaned up with last week’s 13% sell-off, claiming $104 billion in profits on “put” options, betting stocks would go down. While that’s all very technical, average investors lost their shirts last week, watching the retirement accounts shrink, giving back all of 2020’s gains. Watching the tech-rich Nasdaq leap 384.80 or 4.49% and S&P 500 jump 136.01 or 4.65% gave investors hope that they could make up losses in short order. But just as the market posted its biggest gains ever, the Centers for Disease Control [CDC] reported another four deaths in the Seattle, Washington area, something that could trigger selling tomorrow..
Chief officer of Seattle and King County Public Health Agency Dr. Jeff Duchin reported four more deaths, something bound to spook investors. Yet for now, investors breathed a sigh of relief watching market averages snap-back, in what’s called a V-shaped curve. Whether or not that happens tomorrow in anyone’s guess. Duchin confirmed 18 cases of coronavirus or Covid-19 in the Seattle area, a broad area covering Snohomish County encompassing Puget Sound. Worldwide deaths amounted to over 3,000 people on some 60,000 cases, roughly a 5% death rate, far higher than expected from the ordinary flu virus.. New York Gov. Andrew Cuomo got permission from the Washington-based CDC to test for Covid-19, despite only have one known case in New York. Cuomo wants to get ahead of the corona-virus spread, concerned about population density in New York City..
Cuomo’s pre-emptive actions to allow New York authorities to test over 1,000 cases a day aim to prevent viral spread in heavily populated areas. “I would like to have a goal of 1,000 tests a day capacity within one week because again the more testing the better,” Cuomo said today at a press briefing. Coronavirus cases totaled only one in New York State, prompting Cuomo to get ahead of its possible spread. CDC reported today 91 diagnosed cases of Covid-19 in the U.S., not knowing how many people have the virus but have not been accurately diagnosed. Ten out of 50 U.S. states reported cases don’t know not know whether cases have gone unreported to the CDC. President Donald Trump issued travel restrictions to-and-from China, South Korea. Iran and Northern Italy, where some 18 new cases were reported today, bringing the total to 52. Restricting U.S. travel to infected areas helps controls the virus spread.
South Korean alone has 4,335 cases with 26 deaths, attesting to speed and lethality of the virus in certain populations. Trump promised accelerated work on a Covid-19 vaccine, that’s still18 months away, with scientists working round-the-clock. Meeting today at the White House, the nation’s biggest vaccine makers, including GlaxoSmithLine [GSK.L], Sanofi SA [SASY.PA], Johnson & Johnson [JNJ.N] and Pfizer Inc. [PFE.N] plan to work feverishly on a vaccine. Infectious Disease Chief Dr. Anthony Fauci at the Bethesda-based National Institutes of Health expressed concerns about the rapid spread. “When you have a number of cases that you’ve identified and they’ve been in the community for a while, you’re going to wind up seeing a lot more cases that you would have predicted,” Fauci said. Fauci expressed concern about undiagnosed cases.
Worldwide case hit 87,000 with 3,040 deaths today, if China—and other third world countries—are giving the Geneva-based World Health Organization [WHO] accurate data. Epidemiologists can’t verify the exact number in China, where there could be far more cases and deaths. Wall Street showed some confidence today but it could deteriorate quickly if Covid-19 cases continue to spiral. Shuttered factories in China show no signs of ramping up anytime soon, causing disruptions in U.S. supply chains. If the virus continues unabated in China, it’s doubtful supply chain problems can be resolved anytime soon. While it’s good that major funds jumped back in today, small investors should exercise more caution, not knowing if short-sellers will take over the market again. Making money off panic-stricken markets is the bread-and-butter of Wall Street’s hedge funds.
Wall Street perennial bear, 60-year-old New York University Stern School economist Nouriel Roubini, predicts markets could slide 40% in the next several months sinking Trump chances of reelection. Whether that happens or not is anyone’s guess. What known for sure is WHO has upgraded global risk of Covid-19 to its highest level Feb. 29, offering no reassurance about an early resolution. Infectious disease specialists don’t know whether, like the flu virus, Covid-19 shows seasonal properties, less virulent in the spring and summer months. Hitting 91 case s and sixth deaths in the U.S., the CDC can’t say with certainty whether Covid-9 has peaked. All indications point toward rapid expansion, with two more cases today in Sonoma,.Calif., prompting health officials to declare an emergency. Both cases involved patients infected on cruise ships, one from Mexico, the other from Japan.
