Daily Archive: June 9, 2020

Judge dismisses lawsuit against Michigan governor over coronavirus orders By Reuters

© Reuters. FILE PHOTO: Michigan Governor Gretchen Whitmer addresses the media about the flooding along the Tittabawassee River, after several dams breached, in downtown Midland

By Jonathan Stempel

(Reuters) – A federal judge has dismissed a lawsuit challenging Michigan Governor Gretchen Whitmer’s since-rescinded executive orders requiring that residents stay home and most businesses close to combat the coronavirus pandemic.

U.S. District Judge Bernard Friedman in Detroit said on Friday the U.S. Constitution’s ban on federal lawsuits by citizens against states barred the Michigan plaintiffs from suing Whitmer in her role as governor.

Friedman also said the case had become moot, and the idea that Whitmer might reimpose restrictions was “pure speculation.”

The plaintiffs, including a landscaper and a married couple who had been unable to travel between their two homes, claimed that Whitmer’s orders deprived them of due process and were an unconstitutional taking of their property.

Their lawyer David

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S&P 500 erases losses for the year as markets climb on reopening optimism

U.S. stocks climbed, with the S&P 500 erasing its losses for 2020, as easing lockdowns bolstered economic optimism. The dollar fell.

The equity benchmark extended a rally from this year’s lows to more than 40 per cent, rising to a 15-week high. Occidental Petroleum Corp. surged after Bloomberg News reported the company is reviewing options for its Middle Eastern assets. The Nasdaq 100 rose to a record high, and Boeing Co. led gains in the Dow Jones Industrial Average. The dollar had its longest slide in almost a decade, while Treasuries advanced. Oil sank after Saudi Arabia said it wouldn’t continue its additional, deeper output curbs after June.

Traders pushed up the value of U.S. equities as many parts of the country came out of the shutdowns that brought the world’s largest economy to a standstill. To Citigroup’s strategists including Tobias Levkovich, positioning may be overly extended, and investors may

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Why are stock prices going up when the economy is in ruins? Here’s some helpful context

It’s the question on every investor’s mind.

Google “Why is the stock market going up?” and you get 2.8 billion answers. Yet many of them (we haven’t checked them all) ignore or minimize a significant factor. The once-a-century strangeness of this downturn has combined with the way stock indexes are calculated and an element of sheer chance to produce this apparent contradiction. Understand how that happens, and it all makes sense. Sort of.

There’s a lot to make sense of. Back in January, the economy was growing at a respectable 2.1% annual rate, unemployment was a minuscule 3.6%, and Americans were still spending more money every month, as they had been doing in a nearly unbroken 11-year rise. By all those measures, the economy is now in the worst shape since the Great Depression, with GDP plunging, unemployment officially at 13.3% (suspected by many economists to be higher), and … Read More