Citi discusses the current market conditions and thinks that another US lockdown is unlikely for now.
"In the US, we remain on watch to see if other companies follow on in Apple’s shoes. However, we think another US lockdown is unlikely for now. The reinstatement of state stay-at home orders seems unlikely, given limited public and political appetite. Instead, the current pace of easing could be paused, or other measures like mandatory face masks seem likely. However if hospitals start to become overwhelmed, then the situation could change. We should have more colour on this over the course of this week," Citi notes.
"On case counts: We note again that daily new cases remain a noisy indicator, some increase was expected due to (1) re-opening measures and (2) some states are still in the initial outbreak, and 3) higher testing. Our analysis shows that for eight states, increasing cases cannot be explained by testing alone. Hospitalization data suggests there are rising risks in Arizona and Florida in particular," Citi adds.