Thursday Coronavirus Update: Is There a Disconnect Between Economic Data and the Market?

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There are over 3.7 million cases of the coronavirus worldwide, with over 264,000 deaths.

In the U.S., there are over 1.2 million cases of the virus, with over 73,000 deaths.

New York has over 320,000 cases with over 20,000 deaths. Spain has over 220,000 cases and 25,000 deaths.

We have the April jobs report being released tomorrow, but today we got the jobless claims. Claims totaled 3.16 million, which means that there’s a shocking 33 million Americans who have filed for unemployment since the coronavirus shuttered the economy back in March.

Now, I mention this because there’s a key thing that I want to point out and that’s the market reaction.

The market, today, is firmly in the green.

There have been numerous people pointing out the disconnect between the market and the negative economic we’re getting.

Brad McMillan, CIO of Commonwealth Financial Network, said, “The discrepancy between what the economy is saying and what the financial markets are doing is (to use the term again) unprecedented. The story of April and of May will be what that discrepancy means and how it resolves.”

TheStreet's Katherine Ross asked Jim Cramer, Ross and Enright's Bull Market Fantasy cohost, about this disconnect and he pointed out the Moderna Phase 2 vaccine trials, the optimism about the economy, etc., as buoys for this market.

And McMillan acknowledged, “While there is a real risk that irresponsible opening could set the stage for another explosion of cases, there is also a good chance that if people act responsibly, May could be the start of finding a new balance between medical and economic risk factors.”

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