Markets were already vulnerable before President Donald Trump's Covid-19 news: Sanchez

Gina Sanchez, CEO of Chantico Global, discusses the potential market reaction to the announcement President Trump has tested positive for COVID-19, and how stocks were already tilted towards the downside given stalled stimulus talks in Washington and a slowing recovery. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi Stocks clawed back steep losses that followed President Donald Trump’s coronavirus diagnosis after House Speaker Nancy Pelosi signaled aid for the airline industry could be coming soon, perhaps even as part of a much-anticipated broad relief bill. The Dow Jones Industrial Average was down more than 400 points at one point after Trump said he tested positive for the virus overnight, raising concerns about a second wave of the virus and a slower reopening. But Pelosi’s comments boosted the airline stocks and the broader market on the hope there is still a good chance of a big relief package. The 30-stock benchmark last traded up 20 points, while the S&P 500 fell 0.5%. The Nasdaq Composite declined 1.5%. Shares of airlines jumped higher in unison after Pelosi called on the industry to delay furloughs, saying relief for airline workers is “imminent.” American Airlines and United erased earlier losses and popped about 3% each. “We will either enact Chairman DeFazio’s bipartisan stand-alone legislation or achieve this as part of a comprehensive negotiated relief bill, extending for another six months the Payroll Support Program,” Pelosi said in a statement. Earlier Friday, Pelosi said Trump’s illness changed the dynamic of stimulus talks, adding lawmakers will find the “middle ground” and will “get the job done.” The House passed the $2.2 trillion Democratic coronavirus stimulus bill Thursday night, while Treasury Secretary Steven Mnuchin has offered a $1.6 trillion package. Still, the president’s illness added more uncertainty to the election, an event that was already weighing on the market and keeping traders on edge as they attempted to evaluate the possible outcomes. White House physician Dr. Sean Conley said in a memo, “The President and First Lady are both well at this time, and they plan to remain at home within the White House during their convalescence.” Conley also said he expects Trump to “continue carrying out his duties without disruption while recovering.” White House chief of staff Mark Meadows said Friday Trump was having “mild” symptoms after testing positive for the virus and that he and Melania are in “good spirits.” Vice President Mike Pence and second lady Karen Pence have both tested negative for the coronavirus, Pence’s spokesman said Friday. Mnuchin has also tested negative, the Treasury’s assistant secretary for public affairs said Friday. “This October surprise raises the already high level of political uncertainty markets are dealing with as election day approaches,” said Jeff Buchbinder, Equity Strategist for LPL Financial. “Markets appear to be increasingly pricing Joe Biden in as the favorite, and this news may not change that, but Trump could gain support from a quick recovery.” The Trump tweet initially knocked down Dow futures more than 500 points in overnight trading. » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-n... Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC For info on the best credit cards go to CNBC Select: https://www.cnbc.com/select/best-cred... #CNBC #CNBCTV