Wall Street opens week with rally after positive COVID-19 data
Maria Bartiromo offers insight and analysis as the markets open.
Get all the latest news on coronavirus and more delivered daily to your inbox. Sign up here.
Fox Business Network anchor Maria Bartiromo joined “America’s Newsroom” Monday as U.S. equity markets soared in response to signs that the spread of COVID-19 is abating in some of the hardest-hit areas of the U.S.
On Monday, New York Gov. Andrew Cuomo told reporters that the number of daily coronavirus deaths in his state had been "effectively flat for two days." The governor reported 599 new deaths Monday, slightly up from 594 on Sunday but down from 630 on Saturday.
THE CORONAVIRUS OUTBREAK STATE BY STATE
Cuomo also reported that the number of hospitalizations – and admissions into intensive care units – had also hit their lowest points in more than two weeks, but cautioned against "getting overconfident too quickly.”
On Sunday, President Trump told reporters at the White House that while the next two weeks would be difficult, there was “light at the end of the tunnel."
As of Monday afternoon, COVID-19 has infected more than 347,000 people in the U.S. and killed more than 10,300 Americans, according to the latest figures provided by Johns Hopkins University.
Bartiromo said the “little decline” in deaths in the country over the weekend “is indicating that maybe the pace is slowing down a bit in terms of the number of deaths in New York, obviously a hot spot in the country.”
She added that as a result, “the market looks at that saying, ‘Okay, we’ve got that and we also have some treatments right now that we're talking about.’ [Antimalarial drug] Hydroxychloroquine working with [antibiotic] Z-Pak … you are seeing evidence that it is working.”
“So I think Wall Street is now seeing this and saying, ‘You know what? Maybe we're actually getting to a point where we can actually see some clarity and we have a vision in terms of when the economy will open again.’”
Bartiromo acknowledged, though, that the next two weeks will be bad from a health standpoint.
“Make no mistake, we are approaching the worst two-week period,” she said, adding that “the president has called the next two weeks horrific and even Dr. [Deborah] Birx is saying don't go to grocery stores, don't to go to pharmacies in the next two weeks, be covered up and wear masks.”
“So we are right now at the beginning of the peak, we believe, and I think when Wall Street sees what’s going on in terms of treatments, in terms of efforts by the pharma sector for a vaccine, as well as these new numbers from New York there is a glimmer of hope and that’s what's really riding this market this morning,” Bartiromo said.
Bartiromo also said part of the market gain could be attributed to the government providing some clarity about the implementation of small businesses loans.
“Now that SBA [Small Business Administration] and Treasury have shared key implementation details and made important changes to the program, I expect banks of all sizes will participate and provide this important financial lifeline to small business customers,” Rob Nichols, president and CEO of the American Bankers Association, said.
Last month, President Trump signed a more than $2 trillion legislative package to combat the coronavirus pandemic and send economic relief to workers and businesses squeezed by restrictions meant to stop the outbreak’s spread. The legislation amounts to the costliest stimulus plan in U.S. history. It includes checks for most Americans, an increase in unemployment aid, help for small business as well as a massive loan fund for corporations.
Under the plan, small businesses can apply for federal subsidized, low-interest loans for the lesser of $10 million or a percentage of their payroll. The government will pay off the loans made by the bank in their entirety if the business maintains its workforce.
“There were lots of rules from the Small Bank Association which basically did not have the clarity that the banks needed in terms of lending,” Bartiromo said on Monday. “You saw Wells Fargo cap the amount that it’s willing to participate here. Bank of America is trying to do as much as it can, but initially the banks weren't sure.”
CLICK HERE FOR COMPLETE CORONAVIRUS COVERAGE
“I think that clarity has now been happening and I think maybe that's also partly this rally here,” she continued. “We're actually seeing the Small Business Administration loan program work now, but it was a little spotty on Friday and that was certainly an issue for the businesses that needed the money.”
Fox Business’ Jonathan Garber, Charlie Gasparino and Lydia Moynihan and Fox News’ Greg Norman contributed to this report.
Fox News First
Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox.
By entering your email and clicking the Subscribe button, you agree to the Fox News Privacy Policy and Terms of Use, and agree to receive content and promotional communications from Fox News. You understand that you can opt-out at any time.