U.S. markets closed
  • S&P 500

    4,255.15
    +7.71 (+0.18%)
     
  • Dow 30

    34,393.75
    -85.85 (-0.25%)
     
  • Nasdaq

    14,174.14
    +104.72 (+0.74%)
     
  • Russell 2000

    2,326.15
    -9.66 (-0.41%)
     
  • Crude Oil

    71.13
    +0.22 (+0.31%)
     
  • Gold

    1,867.20
    -12.40 (-0.66%)
     
  • Silver

    27.99
    -0.16 (-0.57%)
     
  • EUR/USD

    1.2127
    +0.0021 (+0.17%)
     
  • 10-Yr Bond

    1.5010
    +0.0390 (+2.67%)
     
  • GBP/USD

    1.4102
    -0.0015 (-0.10%)
     
  • USD/JPY

    110.0870
    +0.4520 (+0.41%)
     
  • BTC-USD

    39,874.31
    +947.01 (+2.43%)
     
  • CMC Crypto 200

    993.73
    +24.89 (+2.57%)
     
  • FTSE 100

    7,146.68
    +12.62 (+0.18%)
     
  • Nikkei 225

    29,161.80
    +213.07 (+0.74%)
     
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Major indices open mixed amid a surge in coronavirus cases

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Mike Ryan, UBS Wealth Management Americas Chief Investment Officer, Yahoo Finance’s Brian Sozzi and Jared Blikre to discuss the latest market action.

Video Transcript

BRIAN SOZZI: All right, let's get back on the markets here and bring in Mike Ryan. He's Americas Chief Investment Officer at UBS Wealth Management. Mike, always good to speak with you here. So the rally on Wall Street continues, but for how much longer, do you think?

MIKE RYAN: Well, Brian, I think it can be sustained, but I think we're going to continue to see some of the choppiness that we've seen over the course of the last couple of weeks. Look, as you just mentioned, we're seeing a resurgence or a second spike in the first wave of coronavirus. What we've seen so far, though, is that while it's certainly leading to some restrictive measures being put back into place, we're not seeing the sort of broad-based wholesale shutting down of the US economy that we saw earlier. So against that backdrop, we will see volatility, but I do expect to see equity markets to change and grind higher.

BRIAN SOZZI: Mike, what-- we've talked to a lot of pros on the street recently, and they're all fixated on the potential for rising deaths related to COVID-19. It's morbid stuff, but that seems to be the metric that a lot of pros are watching. Are you watching that? And what do you need to see from that to ultimately say, hey to clients, you know what, now's the time to raise a little more cash?

MIKE RYAN: So the first-- we're actually looking at a few things. First of all, we are still monitoring confirmed cases, although we do recognize there's limitations to that data, because you expand testing, you're going to get more confirmed cases. And also, as it begins to affect some of the younger parts of the population what you have is less acute issues in terms of disease manifestation. So actually, we're going to focus on is going to be acute care capacity in a lot of our hospitals and medical centers, because that's going to be critical to determine how our public health system is able to handle this-- this loading of coronavirus cases outbreaks.

And then secondly, as you just mentioned Brian, it will be about mortality rates. What we're seeing is that some of the progress that's been made by health care professionals over the course of the last six months means that they know how to treat this disease better. They know how to manage it better without putting people onto ventilators, which has often been a precursor to a lot of-- high fatality. So they are getting better at manage it, so we'll see how some of these therapeutics, as you talked about just a few minutes ago, remdesivir, how these can be supplemented with some other things like anti-inflammatories in treating some of the more acute symptoms of the disease, and therefore managing that mortality rate lower.

BRIAN SOZZI: All right, Jared, let me get over to you for a look at the markets. I am so-- I'm surprised-- let's just be frank here. I'm surprised to see the Dow up close to 200 points at the opening here, giving what we have seen, what we saw over the weekend regard to COVID-- with regards to COVID.

JARED BLIKRE: Yeah, but we got to consider what could happen over the next 24 hours. Usually, we don't see the big moves until about Tuesday morning around 10:00. That kind of sets the direction for the week. But just looking at what's happening today in the markets, we got industrials, materials, financials, all outperforming, so cyclical and value play's doing well.

On the Dow, we have Boeing up about 6%, although still down about 44% year-to-date. And then looking at the NASDAQ 100, we can see those FANG stocks largely under pressure, except for Apple, up about 68 basis points. But Facebook having another tough day in the early going, down 2%. If we look over the last five days, we can see that big slide-- slide they took Friday, down about 12% over the last week.

And then just taking a look at our sectors today, we can see industrials, materials, staples, utilities, real estate, financials, those guys are outperforming. Communication services, which has Facebook and Twitter in it, that is the biggest laggard right now. That is followed by tech. That's off about 10 basis points.

But I also want to take a look at the banking sector. That is outperforming this morning. We got JP Morgan up 8/10 of a percent. Citi up about 7/10 of a percent. And the KBW Bank Index is coming back here. It has been under pressure as of late. But it's up 1% after sliding 8% over the last five days. Brian.

BRIAN SOZZI: Jared, real quickly, what are you seeing in the oil patch? We had the Chesapeake bankruptcy. Has that hit sentiment this morning?

JARED BLIKRE: I don't think it's looking-- I don't think it's hitting sentiment this morning. We have a lot of green in the oil patch. And that news regarding Chesapeake had largely been baked in. Those rumors started circulating two or three weeks ago. That stock has taken quite a hit. But overall, energy doing fairly well today. Crude oil, if I can find the price, I believe it's been up about 1% or 2%, up about half a percent right now.

BRIAN SOZZI: Mike, back to you here. This morning, we get news that Gilead is pricing its remdesivir COVID treatment at more than $2,300. That's a lot of money. Do you have clients asking you how to play biotechs? And are you interested in that space at all?

MIKE RYAN: So first of all, one of the areas we are overweight is health care, in general. We do believe that part of that is going to be part of the biotech story. Remember that it's not just about remdesivir. There-- there are other therapeutics that are being developed, and they're going to be commercialized during this process.

Let's also remember that a lot of the companies that are currently engaged in different levels of phase two and phase three drug trials for vaccine testing, those also have the potential to deliver blockbuster drug treatments over the course of the next six to 12 months. So it's a broad-based approach. We're not going to narrow in exclusively on biotech. We're going to have a broad approach in terms of health care.

The second thing I want to mention quickly, Brian, on-- to back to something that Jared mentioned about, you know, and talked about the volatility in the market overall, stepping away a bit from the health care sector. One of the things we have to recognize, of course, while COVID-19 cases are something that the market is certainly focused on, let's not forget the market's also focused on policy responses. We had the Fed, once again, reiterate their commitment to keeping an open-ended policy approach and the fact that they're going to expand it into other asset classes, including corporate bonds. And on top of that, we know have Congress actively discussing another potential $3 trillion in stimulus spending. These things are part of what we're looking for to help build a bridge over that demand void that we're seeing created by COVID-19 and allow the economy to-- to recover into the fourth quarter of this year.

JARED BLIKRE: But Mike, I just want to follow up on that. The Federal Reserve programs, especially the Main Street Lending Facility, I don't think there's been one loan in that yet. And you look at some of the additional fiscal stimulus measures might have some trouble getting through Congress. Do you see any hiccups along the road in the market because of the ineffectiveness or lack of enough fiscal and monetary policy so far?

MIKE RYAN: So Jared, let me touch back on your first point here. First of all, you don't need to access it for it to provide confidence to the market. Remember, it's about the-- it's the ability to backstop the credit spreads and the functioning of the credit markets. That's really important about this. And the fact that people don't actually tap into it is not necessarily a bad thing. It could be a sign that things are beginning to normalize.

Going back on-- on fiscal policy, I do-- I do agree with you here. I think this is going to be the most contentious part of the budget negotiations. If you think about it, the first couple of waves of fiscal stimulus happened at what I would consider to be blinding speed for Washington. Typically, if you think about it, when we do see fiscal action, it has to go through legislative process, and that's a usually cumbersome drawn-out affair. So the fact that they were able to get these packages through both branches of Congress and then onto the president's desk for signature has been surprising.

I think what you're going to see going forward now, Jared, is the next part is going to be much more contentious. There's going to be a lot more politicking around the different options that are going to be placed in those packages. So I don't doubt for a moment this is going to be a more of a drawn-out affair. But I do think there's a recognition that there's still a need for additional support, both to small businesses, as well as to households. And I think that's going to ultimately hold the day in terms of stimulus.

BRIAN SOZZI: Mike, does this market rally totally unravel if we don't get that stimulus plan this summer?

MIKE RYAN: No, it doesn't totally unravel, Brian, but I think there's a couple of things that we need to-- do need to see happen. One is-- is we do need to see that some of the public health measures that are being put in place right now are adequate to sort of just begin to, again, flatten out the curve, once again, and allow the economy to reopen. And the other thing that we need to see is that we do get a little bit more visibility on corporate earnings about what the damage has been so far to COVID-19 and also what the glide path is for a recovery in corporate revenues over the course of 2021.

Because remember, the not-- there's not going to be a whole lot of focus on 2020 earnings, because I think there's a recognition that this is going to be a black hole. You may even see some companies choosing to kind of kitchen sink some earnings announcement into 2020, with the expectation to set you up better for 2021. So I think that the-- the absence of another stimulus package isn't necessarily a horrible thing for markets, but I do think it would be helpful in terms of building that bridge that we've talked about repeatedly.

BRIAN SOZZI: Mike, I have 30 seconds left. How are your clients positioned to the jobs report on Friday?

MIKE RYAN: So first of all, we're telling people is-- is not to get overly focused on individual economic releases, even the employment reports, which we think is most important, because what we're seeing is that all of this high-frequency economic data is still subject to a lot of volatility because of so much uncertainty. We are looking for another substantial gain in employment in Friday-- I'm sorry-- on Thursday rather--

BRIAN SOZZI: I should say Thursday. Yeah, totally-- totally forgot that one.

MIKE RYAN: But we recognize this comes after such massive job loss that we have to put that in context as well, Brian.

BRIAN SOZZI: All right, Mike Ryan, always good-- always good to speak with you. We'll talk to you soon.

MIKE RYAN: Thanks, Brian. Be safe.