Markets Live Recap: Our Experts Cover Earnings Season, Airlines, Gold, Oil, and Amazon

By Money Morning Staff Reports, Money Morning • April 13, 2020

The markets were met with more selling this morning as investors continue hedging the uncertainty brought by the coronavirus.

There have been discussions of reopening the economy, but nobody can be sure when this will happen or how long it will take to get back to full capacity.

To help you navigate these unprecedented times, we're going live every day the markets are open.

Our experts - Chris Johnson, Tom Gentile, D.R. Barton, Jr., and Shah Gilani - are each taking time out of their busy days to show you exactly what they're seeing in the markets in real time.

They will even answer your questions live, on air.

Here's what they covered today, Monday, April 13...

Chris Johnson (8:45 a.m. EDT)

• Chris thinks we're looking at a volatile week ahead as earnings season kicks off.
  • Reality could be worse than the already low expectations for companies.
• He told investors to start considering hedged positions in oil, banks, and transportation companies.
  • These sectors are ripe to "sell the news" while trading.
• Chris is watching the technicals closely this week:
  • S&P 500: resistance at 2,800.
  • The VIX at 40 means that we should continue to expect above-average volatility.

Tom Gentile (11 a.m. EDT)

• Tom is concerned that the amount of liquidity the Fed needs to pump into the system to keep it propped up will start to cause inflation and devaluation of the dollar.
  • So, he expects gold to breach $2,000 per ounce rather quickly.
• Tom also covered the $7.5 trillion travel industry today, focusing in on the distressed airline industry. He even listed his top eight U.S. airlines:
  • Tom's favorite airline is Southwest Airlines Co. (NYSE: LUV) because it has limited international exposure.
  • Tom's least favorite airline is Delta Air Lines Inc. (NYSE: DAL). It's the biggest in the industry and has a ton of exposure to international flights. Tom thinks Warren Buffett sold his position in DAL because the company is losing $60 million a day. That means it's going to be out of cash in about six weeks if it doesn't get a huge bailout by the government.
  • Get Tom's complete U.S. airline rankings at TomsTradingRoom.com.

D.R. Barton, Jr. (1:30 p.m. EDT)

• D.R. said investors should be paying close attention to the earnings reports released by the banks this week and next.
• He's also paying close attention to the recent increase in gold demand throughout the world and what that means for inflation of the dollar and other fiat currencies.
  • R. said he'll unpack this situation more as it unfolds throughout the week.
• D.R.'s favorite stock to own right now and for the long term is Amazon.com Inc. (NASDAQ: AMZN).
  • The company just announced today that it will hold inventory for third-party sellers who want to sell their goods through the Amazon.com platform.

Shah Gilani (3:45 p.m. EDT)

• Shah doesn't like that Fed is pumping trillions of dollars into the economy to keep it propped up.
  • Instead of letting capitalism play its course and letting unwanted companies fail, Shah thinks the Fed is kicking the can further down the road.
  • This short-term stimulus will just create an even bigger problem in the future.
• Shah does not agree with Goldman Sachs' call that the bottom is in.
  • Instead, he thinks a bad earnings season will bring more pain to investors, and the best way to play that is through buying gold and puts on SPY.

Catch us tomorrow - starting LIVE again at 8:45 a.m. EDT with Chris Johnson right here.

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