States Start To Reopen Economies

Plus: Are Bank Stocks a Red Flag? You are receiving this limited-time email resource as a subscriber to Kiplinger's free e-newsletters. We will continue to publish this daily throughout the height of the coronavirus outbreak. To unsubscribe at any time, simply click the link in the footer below. MAY 14, 2020 [View in browser]( [Corona]( WHAT YOU NEED TO KNOW ABOUT THE CORONAVIRUS OUTBREAK As more states start their reopening process, which are ready to do so? Proposed requirements for reopening were either that the daily number of positive results decline over a 14-day period, or that the percentage of positive test results decline over 14 days, since more testing could cause the absolute number of positives to rise. SEE ALSO: [7 Ways the Pandemic Will Change Big U.S. Cities]( Nearly all states are seeing a decline in the percentage of positive test results since the beginning of May. The states that are seeing a declining rate, but which still have more than 10 percent of tests showing positive include Colorado, Connecticut, Delaware, Iowa, Illinois, Indiana, Kansas, Massachusetts, Maryland, Nebraska, New Jersey, Pennsylvania, South Dakota, Virginia and Washington, D.C. The highest of these are New Jersey and Maryland, both over 20%. States that are seeing an increase in their positive percentage include Alabama, Minnesota and Utah. Their overall infection numbers are low, but could become worrisome if these trends continue. It will take another week to know for sure if reopenings are boosting infection rates, and if so, by how much. Three of the states that never completely closed, Iowa, Nebraska and South Dakota, currently have high positive rates of 15% or more. Minnesota opened early, and also is seeing 15% positives. However, Georgia opened early and currently has a declining rate under 10%. Is it time to listen to the banks? The good news is that banks and other financial institutions don't appear to face the same existential crisis they did back in 2007-09. The bad news: Their stocks are still getting obliterated, and that might be an ominous signal for the rest of the stock market. The Financial Select Sector SPDR ETF ([XLF]( has lost 33.6% in this bear market -- second only to energy's loss (-34.9%) and roughly double the S&P 500's decline. That includes a 7%-plus decline through the first three days of this week, helped in part by Fed Chair Jerome Powell's Wednesday warning of "significant downside risks" to the economy. In [yesterday's Closing Bell]( we mentioned that hedge fund manager David Tepper believes this is the second most overpriced stock market in history after the 1999 dot com bubble. He also believes banks will be "left holding the bag once again" as a waterfall effect of small-business pain and stunted consumer spending takes hold. Does that spell certain doom for the broader market? Not necessarily. But banks' continued weakness is a dire signal for the economy, which could keep a lid on a meaningful recovery for stocks. Free download, [The Kiplinger Letter's Forecast](. No information required from you. SPONSORED CONTENT FROM SMARTASSET [People Who Retire Comfortably Avoid Financial Advisor Mistakes]( [People Who Retire Comfortably Avoid Financial Advisor Mistakes]( Don't make the mistake of not properly vetting your options. This [free tool]( helps you compare fiduciary financial advisors in your area. [READ MORE]( RELATED LINKS [Gifts for Grads to Build Good Money Habits]( [Podcast: Is Your State Prepared for a Recession?]( [Pros' Picks: The 15 Best Nasdaq Stocks You Can Buy]( [How a Second Stimulus Check Could Differ from Your First One]( [20 Retailers That Have Amended Their Return Policies Due to COVID-19]( [Kiplinger] [Facebook]( [Twitter]( [LinkedIn]( [Google+]( [Tumbler]( Send this to a friend. [Click here.]( All content ©2020 The Kiplinger Washington Editors 1100 13th Street, NW, Suite 1000 Washington, D.C. 20005 Thank you for subscribing to Kiplinger's A Step Ahead, a free resource to help readers navigate special circumstances such as the coronavirus outbreak. If you ever wish to stop receiving this daily service, please [click here to unsubscribe.](