Dow Jones

Dow pops over 1,600 points on coronavirus slowdown, new stimulus hopes

U.S. equity markets soared late Monday on chatter that a new round of fiscal stimulus valued at $1.5 trillion could come by mid-May, as reported by FOX Business’ Charlie Gasparino. The report fueled a late-day surge that added to the strong gains that developed early in the session after new data showed COVID-19 could be slowing in some of the hardest-hit areas. The Dow Jones Industrial Average gained 1,627 points or 7.7 percent, while the S&P 500 and Nasdaq Composite were higher by 7 percent and 7.3 percent, respectively. It was the third-largest point gain for each. The number of new cases over the weekend in New York City, the U.S.’s epicenter for the virus, rose by 30.4 percent versus last week, down from a 46.1 percent jump the week prior. As of Monday afternoon, the number of fatalities was effectively flat for the past two days. President Trump said at a press conference on Sunday that while there was “light at the end of the tunnel” the next two weeks are going to be difficult. A daily update is set for 5 p.m. ET. COVID-19 has infected nearly 352,546 people in the U.S. and killed 10,335, according to the latest figures provided by Johns Hopkins University & Medicine. More than 18,999 people have recovered as of Monday afternoon. Looking at stocks, JPMorgan Chase CEO Jamie Dimon said in the company’s annual shareholder letter released Monday that suspending the dividend for 2020 cannot be ruled out as the bank looks to conserve cash amid the pandemic. The big banks kick off earnings season next week. Boeing announced production at plants in the Seattle area would remain suspended until further notice. Work was scheduled to resume later this week after being halted on March 23. Delta Air Lines and Southwest Airlines were in focus after Warren Buffett’s Berkshire Hathaway said in a filing late Friday that it unloaded significant portions of its stakes in the two companies. Elsewhere in the space, American and United airlines cut more flights to the New York City area. Apple CEO Tim Cook announced Sunday evening that the tech giant has sourced 20 million masks to help aid in the fight against COVID-19. The company is also working to produce face shields for medical workers. Zoom Video Communications was sharply lower after Credit Suisse downgraded shares, saying their current price was too optimistic for the amount of paid services that will be won from the recent spike in usage. West Texas Intermediate crude oil for May delivery pulled back 7.9 percent to $26.08 per barrel after Russia and Saudi Arabia postponed a virtual meeting to discuss production cuts. The energy component gained 31.75 percent last week, the most since recordkeeping began in March 1983, according to Dow Jones Market Data Group. Meanwhile, gold climbed 2.6 percent to more than $1,677 per ounce. U.S. Treasurys were under pressure, running the yield on the 10-year note to 0.675 percent. Germany’s DAX led European markets higher, up 5.77 percent, while France’s CAC and Britain’s FTSE gained 4.61 percent and 3.08 percent, respectively. Asian markets ended mixed as Japan’s Nikkei jumped 4.24 percent and Hong Kong’s Hang Seng added 2.21 percent. China’s Shanghai Composite was closed for holiday.

Stocks jump building on best week since 1938

U.S. equity markets locked in gains Monday as traders digested the news that social-distancing guidelines were extended until at least April 30 and as Treasury Secretary Steven Mnuchin reiterated details on how small businesses can obtain loans quickly in an interview on FOX Business. The Dow Jones Industrial Average rose 690 points or 3 percent. The S&P 500 and Nasdaq Composite gained 3.3 percent and 3.6 percent, respectively. Last week, the Dow added 13 percent, making for its best week since 1938. The markets also absorbed news of worker furloughs in the retail sector. Macy’s plans to furlough the majority of its 130,000 employees and while The Container Store said it has furloughed some corporate staff. Shares of both companies fell on the news. Airlines slid as they awaited the release of tens of billions of dollars of aid from the federal government. Additionally, cruise operators remained under pressure after receiving a downgrade from Berenberg Research. General Motors was in focus after President Trump praised the automaker, saying it was doing a “fantastic job” ramping up ventilator production. Abbott Laboratories surged after the company’s five minute COVID-19 test received Food & Drug Administration approval. Johnson & Johnson announced testing for its COVID-19 vaccine would begin by September and that it could be available for emergency use authorization in early 2021. Regeneron and Sanofi said Monday that their rheumatoid arthritis drug Kevzara treated its first patient with severe COVID-19 in a global clinical trial. Elsewhere, Apple gained despite Reuters reporting iPhone demand was likely to be down 18 percent from a year ago. Jefferies CFO Peg Broadbent died over the weekend due to complications related to COVID-19. On the commodities front, West Texas Intermediate crude was trading down 6.6 percent at $20.09 per barrel, closing at its lowest level since February 2002. Meanwhile, gold futures for April delivery fell 0.2 percent to $1,622 an ounce. U.S. Treasurys gained, pushing the yield on the 10-year note down 7.7 basis points to 0.667 percent. In Europe, Germany’s DAX gained 1.9 percent while Britain’s FTSE and France’s CAC were up 1 percent and 0.6 percent, respectively. Asian markets fell, with Japan’s Nikkei falling 1.6 percent, Hong Kong’s Hang Seng sliding 1.3 percent and China’s Shanghai Composite shedding 0.9 percent.

This is great news!  Let’s pray this trend continues.    🙂

Dow Soars More Than 2000 Points, Best Day Since 1933

Stocks stormed upward on Tuesday as investors assessed that the likelihood of an economic rescue deal out of the nation’s capital had increased. The Dow Jones Industrial Average rose by more than 2,112.98 points, or 9.69 percent. The S&P 500 climbed 9.38 percent. The Nasdaq Composite jumped 8.12 percent. That was the best one-day gain for the Dow since 1933. All 11 sectors of the S&P jumped higher. Energy was the best performing sector, rising 16.29 percent. After that, industrials and financials were the next best-performing sectors, rising by 12.94 percent and 12.84 percent respectively. The worst sector, consumer staples, rose by an otherwise impressive 4.29 percent. The best performing Dow stocks were Chevron’s 22.5 percent gain, American Express with a 21.24 percent rise, and Boeing with a 19.6 percent gain. Verizon, the only Dow stock to fall, dropped 1.16 percent. Investors bid up stock prices on the hopes that an economic rescue deal seemed close to being reached on Capitol Hill. Yet as of the market close on Tuesday, no definitive deal had yet been reached.

Whew!!  Finally!!  Let’s pray this continues.      🙂

Stocks Go Boom: Dow Jumps 1,600 Points on Rescue Deal Hopes

Stocks stormed upward on Tuesday as investors assessed that the likelihood of an economic rescue deal out of the nation’s capital had increased. The Dow Jones Industrial Average rose by more than 1,600 points, or 8.4 percent. The S&P 500 climbed 7.4 percent. The Nasdaq Composite jumped 6.5 percent.

We hope this upward trend continues…and that Congress comes to its senses and passes that rescue deal asap so the President can sign it.  We’ll, of course, keep an eye on the markets.

Stock futures recoup some losses from biggest rout since 1987

U.S. equity futures are pointing to a higher open a day after markets suffered their steepest single-day loss since 1987. Dow futures were up 101 points, or 0.5 percent, ahead of the opening bell, but had been higher by as much as 800 points in overnight trading. S&P 500 and Nasdaq futures were higher by 1.1 percent and 0.9 percent respectively. Treasury Secretary Steven Mnuchin is making the rounds on Capitol Hill discussing further stimulus measures that could be taken to boost the U.S. economy amid the coronavirus crisis. West Texas Intermediate crude oil futures for May delivery were up 2.1 percent at $29.62 a barrel while gold futures for April delivery traded lower by 1.4 percent at $1,466 an ounce. The Dow Jones Industrial Average plunged 2,997 points, or 12.9 percent, during Monday’s session while the S&P 500 and Nasdaq Composite lost 12.3 percent and 12 percent, respectively. The drop was the steepest for all three of the major averages since the 1987 Black Monday crash. President Trump, during the coronavirus task force update on Monday, signaled the crisis could wade deep into July or August. In Europe, London’s FTSE fell 1 percent, Germany’s DAX added 0.4 percent and France’s CAC gained 0.9 percent. In Asian markets on Tuesday, Japan’s Nikkei added 0.1 percent, Hong Kong’s Hang Seng gained 0.8 percent and China’s Shanghai Composite slipped 0.3 percent.

Stocks post biggest rally since 2008, clawing back some of their coronavirus collapse

Stocks soared Friday as Wall Street rebounded from the sharp losses suffered in the previous session — the worst since the “Black Monday” market crash in 1987. The Dow Jones Industrial Average closed 1,985 points higher, or 9.4%, at 23,185.62. Friday marked the Dow’s biggest-ever point gain. The S&P 500 climbed 9.2% to 2,711.02 while the Nasdaq Composite surged 9.3% to 7,874.23. The averages posted their biggest one-day gain since October 2008. “Volatility, I always remind people, means big moves in both directions,” said Randy Frederick, vice president of trading and derivatives at Charles Schwab. “After as big of a rout as we’ve seen in the last 30 years, it’s not at all surprising to see at least a little bit of a bounce.” Equities rallied to their session highs into the close after President Donald Trump also said 50,000 new coronavirus tests will be available next week. Trump also said he asked the Energy Department to purchase oil for the U.S. strategic petroleum reserve, boosting crude prices. “This is certainly an important step forward. The first thing we learned from South Korea is you need to understand the scope of the problem, and you need to identify the disease and who has it and who does not,” said Ed Keon of QMA. “Today will be an important step forward…You saw a big drop when the response seemed inadequate and then when you had a more aggressive response, the market responded positively.” Stocks began the day higher on the hopes of bigger fiscal stimulus from the U.S. government and others around the world. Treasury Secretary Steven Mnuchin told CNBC’s “Squawk on the Street” the White House and Congress were nearing a deal. “The president is absolutely committed that this will be an entire government effort, that we will be working with the House and Senate,” Mnuchin said. House Speaker Nancy Pelosi said U.S. lawmakers and the White House were close to a deal on economic relief amid the coronavirus outbreak. “We’ve resolved most of our differences,” Pelosi told reporters Thursday evening, noting it’s about “testing, testing, testing.” Also helping equities on Friday, the Federal Reserve said it will start buying Treasurys across all durations, starting with 30-year bonds. “These purchases are intended to address highly unusual disruptions in the market for Treasury securities associated with the coronavirus outbreak,” the New York Fed said in a statement. Apple and Facebook jumped more than 10% each to lead the so-called FAANG stocks higher. Google-parent Alphabet gained 9.3% while Amazon and Netflix both rose more than 6%. For the week, the major averages posted steep losses despite Friday’s sharp gains. The Dow lost 10% this week while the S&P 500 and Nasdaq slid more than 8% each. Friday’s action followed the official end of the longest bull-market run in history. The S&P 500 plummeted 9.5% Thursday in its worst day in more than three decades, joining the Dow in a bear market, or more than 20% from its recent peak. The Dow also suffered its worst point drop ever and the biggest percentage decline since 1987. “It almost seems as if the market has a gravitational force to that Dec. 24, 2018 low,” said Quincy Krosby, chief market strategist at Prudential Financial. “It feels as though the market wants to go back there.” “That said. there has been indiscriminate selling, which is good thing,” said Krosby. “That’s the kind of panic you wait for.” Investors were bombarded with a slew of negative headlines about the fast-spreading coronavirus this week. The NCAA has canceled its March Madness basketball tournaments, a day after the National Basketball Association suspended the remainder of its season indefinitely. New York Mayor Bill de Blasio declared a state of emergency, while new restrictions for large events and businesses were imposed. “We expect volatility to remain for a while,” said Gene Goldman, head of research at Cetera Investment Management. “There’s so much unknown about the virus and the economic impact.”

Indeed..  But, again..we’ll weather this storm and get through it.

US stock futures soar to limit-up level

U.S. equity futures surged Friday morning, reaching the highest increases allowed outside regular trading hours, after both the Federal Reserve and the Bank of Japan pumped money into the financial system. The major futures indexes — for the Dow Jones Industrial Average, S&P 500 and Nasdaq — are indicating a gain of 5 percent once regular trading starts. Gains in such equity futures contracts have been capped at 5 percent during overnight trading under rules imposed after the “flash crash” of 2010. The rallies suggest a sharp turnaround from Thursday, which saw Wall Street’s biggest drop since the Black Monday crash of 1987. Markets worldwide have retreated as fears of economic fallout from the coronavirus crisis deepen and the meltdown in the U.S., the world’s biggest economy, batters confidence around the globe. The sell-off on Wall Street helped to wipe out much of the big gains since President Trump took office. The S&P 500 plummeted 9.5 percent, for a total drop of 26.7 percent from its all-time high, set just last month. That puts it way over the 20 percent threshold for a bear market, officially ending Wall Street’s unprecedented bull-market run of nearly 11 years. The Dow Jones Industrial Average sank 2,352 points, or 10 percent, its heaviest loss since its nearly 23 percent drop on Oct. 19, 1987. European markets are also rebounding after one of their worst days ever. London’s FTSE jumped 8.1 percent, Germany’s DAX gained 7.7 percent and France’s CAC added 8.3 percent. The Bank of Japan on Friday said it would buy 200 billion yen ($1.90 billion) of Japanese government bonds in an unscheduled move, according to Reuters. The BOJ also announced it would inject an additional 1.5 trillion yen in two-week lending. In Asia, Tokyo’s Nikkei was down 6 percent, Hong Kong’s Hang Seng lost 1.1 percent and China’s Shanghai Composite declined 1.2 percent. The rout has come amid cascading cancellations and shutdowns across the globe — including Trump’s suspension of most travel to the U.S. from Europe — and rising worries that the White House and other authorities around the world can’t counter the economic damage from the outbreak any time soon. Stocks fell so fast on Wall Street at Thursday’s opening bell that they triggered an automatic, 15-minute trading halt for the second time this week. The so-called circuit breakers were first adopted after the 1987 crash, and until this week, hadn’t been tripped since 1997. The Dow briefly turned upward and halved its losses at one point in the afternoon after the Federal Reserve announced it would step in to ease “highly unusual disruptions” in the Treasury market and pump in at least $1.5 trillion to facilitate trading. The burst of momentum quickly faded, however. The coronavirus has infected around 132,000 people worldwide and killed almost 4,900. The death toll in the U.S. climbed to 40, with over 1,600 infections. For most people, the virus causes only mild or moderate symptoms, such as fever and cough. For some, especially older adults and people with existing health problems, it can cause more severe illnesses, including pneumonia. The vast majority of people recover from the virus in a matter of weeks. The combined health crisis and retreat on Wall Street have heightened fears of a recession. Just last month, the Dow was boasting a nearly 50 percent increase since Trump took the oath of office on Jan. 20, 2017. By Thursday’s close, the Dow was clinging to a 6.9 percent gain, though it was still up nearly 16 percent since just before Trump’s election in November 2016. The Dow officially went into a bear market on Wednesday, when it finished the day down more than 20 percent from its all-time high. For the S&P 500, this is the fastest drop since World War II from a record high to a bear market. The fallout mounted Thursday, as the NCAA canceled its men’s and women’s basketball tournaments, major league baseball postponed opening day, and Disneyland announced it is shutting down for the rest of the month. Even the Chinese side of Mount Everest closed. Closer to Wall Street, New York’s Metropolitan Museum of Art, Carnegie Hall and the Metropolitan Opera shut their doors, and Broadway theaters planned to go dark. In other trading, the oil market, which suffered huge shocks last week, is still on the decline. U.S. benchmark crude gained 4.3 percent, or $1.33, to $32.76 per barrel in electronic trading on the New York Mercantile Exchange. Brent, the standard for international crude pricing, added $1.25, or 3.9 percent, to $34.48 per barrel.

Well, on the bright side…gas is pretty cheap right now.  We’ll get through this folks.