Stocks soar as Congress works toward $1.6T stimulus package

Stocks soar as Congress works toward $1.6T stimulus package
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U.S. equity markets surged Tuesday morning amid investor optimism that members of Congress will overcome their differences to reach a deal on a $1.6 trillion COVID-19 stimulus package.

The Dow Jones Industrial Average surged 1,480 points, or 8 percent, while the S&P 500 and Nasdaq Composite gained 7.1 percent and 6.5 percent, respectively.

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 19952.37 +1,360.44 +7.32%
SP500 S&P 500 2394.84 +157.44 +7.04%
I:COMP NASDAQ COMPOSITE INDEX 7284.949651 +424.28 +6.18%

The early gains came after the major averages plunged Monday despite the Federal Reserve announcing it would buy unlimited amounts of assets to support the economy. Monday’s 3 percent drop left the Dow at a three-year low and on track for its worst month since September 1931, one of the earliest years of the Great Depression, according to Dow Jones Market Data.

STOCK MARKET’S CORONAVIRUS PLUNGE CONJURES 1987 CRASH FLASHBACKS

Looking at stocks, airlines soared following a report from The Wall Street Journal that carriers are drawing up plans for a potential voluntary shutdown of domestic air travel.

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Ticker Security Last Change Change %
UAL UNITED AIRLINES HLDG. 32.96 +6.71 +25.55%
AAL AMERICAN AIRLINES GROUP INC. 12.94 +2.69 +26.24%
DAL DELTA AIR LINES INC. 27.11 +4.88 +21.98%
LUV SOUTHWEST AIRLINES CO. 38.12 +4.39 +13.02%

Other travel-related names, including cruise operators and online booking sites rocked by fallout from the virus, also saw big gains.

Elsewhere, banks rallied as selling of U.S. Treasurys swung the yield curve steeper. The 2-year yield climbed 5.1 basis points to 0.345 percent and the 10-year yield jumped 7.5 basis points to 0.842 percent.

General Motors said it would draw down $16 billion in credit and suspended its 2020 outlook. Intel shares rose after the chipmaker said it was suspending its buyback program due to uncertainty caused by COVID-19.

Ticker Security Last Change Change %
GM GENERAL MOTORS COMPANY 20.23 +2.63 +14.95%
INTC INTEL CORPORATION 52.42 +2.84 +5.73%
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Oil giant Chevron followed European rival Royal Dutch Shell’s Monday announcement, saying it will cut capital spending by 20 percent and suspend its share-buyback program.

Ticker Security Last Change Change %
CVX CHEVRON CORP. 64.42 +10.21 +18.82%
RDS.B ROYAL DUTCH SHELL PLC 29.59 +4.57 +18.27%
XOM EXXON MOBIL CORPORATION 34.91 +3.46 +10.99%

Commodities gained, with gold rallying 4.8 percent to $1,648 an ounce and West Texas Intermediate crude oil up 1,2 percent at $23.65 a barrel.

Markets surged across Europe, with Germany’s DAX leading the way, up 7.2 percent, while France’s CAC and Britain’s FTSE added 5.1 percent and 4.7 percent, respectively.

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In Asia, Japan’s Nikkei soared 7.1 percent, Hong Kong’s Hang Seng spiked 4.5 percent and China’s Shanghai Composite gained 2.3 percent.

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By Famous Reporters

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