Stock market news live updates: Stocks rise, Dow adds 200+ points after Fed expands stimulus
The shares wiped out previous losses and rose Monday after the Federal Reserve announced plans to buy individual corporate bonds as part of its emerging credit program to provide liquidity to the virus-stricken economy.
At the start of the session, the Dow was down 762 points, or 3%, as investors were shivering over rising coronavirus cases in key parts of the country, triggering an expansion in last week's share decline.
Last week, stocks posted their first weekly loss in a month, with a strong sell-off on Thursday making up much of the weekly decline. The slump, which followed a 40% surge in the S&P 500 since March, came after new data showed that the number of coronavirus cases and hospitalizations in some of the first states reopened stores, and after the state increased The reserve provided a gloomy forecast for economic activity in the short term.
Market participants continued to monitor coronavirus cases across the country for signs of resuscitation. According to Bloomberg data, new cases in the densely populated state of Florida grew faster than the average of last week from Sunday, and the Washington State Department of Health warned of a nationwide increase in the virus.
In New York, the daily death toll for coronaviruses on Sunday was 23, or the lowest since the pandemic began, and well below the nearly 800 a day at the peak of the outbreak in early April. However, Governor Andrew Cuomo pointed out that more than 25,000 complaints about social distance standards violations had been filed, and Cuomo warned that he would tighten the restrictions if companies and individuals failed to adhere to the gradual reopening process.
However, some analysts claimed that regions whose reopening was slower, including the Northeast, were less at risk of re-flare in some cases due to their longer protracted closings.
"We are not concerned that the renewed locks that we expect in parts of Arizona, Texas, the Carolinas, Arkansas, and perhaps other countries will be required elsewhere," said Ian Shepherdson, chief economist at Pantheon Macroeconomics, in a note . "In the densely populated northeast and midwest, far more people were sick than in most of the south, and the closures in major cities were very long and painful."
"Accordingly, we expect people in the Northeast and Midwest to be much more cautious about maintaining social distance and more willing to wear masks in shops, on public transportation, and at leisure facilities," he added.
Meanwhile, White House economic director Larry Kudlow downplayed the economic concerns surrounding potential new waves of coronavirus during CNN's State of the Union on Sunday, saying, "There is a very good chance that You will achieve the V-shaped recovery. ”And the claim that growth would pick up again in the second half of the year. The comments contrasted with some of the more cautious views of officials, including Fed chairman Jerome Powell, who underlined the continuing uncertainty caused by the pandemic last week.
Kudlow also said that the current $ 600 a week unemployment benefit paid to some Americans who lost their jobs during the pandemic as part of Washington's extensive coronavirus plan would end in July and called the program "A negative incentive". so that people can return to work.
Later this week, market participants are ready to receive new economic data on retail and manufacturing, which many economists believe will confirm at least a slight recovery in activity from the April lull.
2:15 p.m. ET: Shares jump after the Fed announced plans to buy individual corporate bonds
Shares rose and the Dow rose more than 200 points after the Federal Reserve announced that it would buy individual corporate bonds that met its criteria under the Central Bank's secondary market corporate credit facility. The Fed had previously only bought exchange-traded funds under this facility.
The new program will include an index made up of all secondary market bonds issued by US companies that meet the minimum rating, maximum term and other criteria of the facility. This indexing approach will complement the facility's current purchases of exchange-traded funds, ”the Fed said in a statement.
The central bank will buy bonds with a higher credit rating and a term of up to five years.
1:16 p.m. ET: Shares go positive, clearing past losses
Here were the main moves in the markets from 1:16 p.m. ET:
S&P 500 (^ GSPC): +6.57 points (+ 0.22%) to 3,047.88
Dow (^ DJI): +1.48 points (+ 0.01%) to 25,607.02
Nasdaq (^ IXIC): +75.44 points (+ 0.79%) to 9,664.73
Crude Oil (CL = F): + $ 0.45 (+ 1.24%) to $ 36.71 a barrel
Gold (GC = F): - $ 9.10 (-0.52%) to $ 1,728.20 an ounce
10-year treasury (^ TNX): unchanged, to achieve 0.669%
9:51 am ET: People "really want to get out of the house" - and that's good for the economic recovery, says the strategist
John Stoltzfus, chief investment strategist at Oppenheimer Asset Management, said Monday in a note that an individual's willingness to return to an appearance of normalcy will contribute to the economic recovery as long as new flare-ups do not slow the reopening.
"A very positive thing that comes out of our observations of reopening in the US and other restarts around the world is that most people really get out of the house, back to school, back to work, back to play and for everyone wants the many facets of everyday life, ”said Stoltzfus. “This wish is good for the individual, society and the economy. This is the process of reopening that makes the difference between success and failure. "
In the current environment, he said, his "favorite sectors" remain information technology, consumer discretionary, industry and finance, the latter of which he described as his "contrary choice".
“From a global perspective, we remain overweight US stocks while maintaining significant exposure to developed and emerging economies as an economic recovery after the shutdown of Covid-19 is expected to boost global economic growth and lead to a global economic recovery (Similar to the one that the world experienced just before the US-China trade war), ”he said.
9:32 am ET: Shares open much lower
Here were the main moves in the markets from 9:32 a.m.CET:
S&P 500 (^ GSPC): -60.66 points (-1.99%) to 2,980.65
Dow (^ DJI): -625.31 points (-2.44%) to 24,980.23
Nasdaq (^ IXIC): -146.94 points (-1.55%) to 9,437.46
Crude Oil (CL = F): - $ 1.45 (-4.00%) to $ 34.81 per barrel
Gold (GC = F): - $ 24.90 (-1.43%) to $ 1,712.40 per ounce
10-year Treasury (^ TNX): -3 basis points for a return of 0.669%
8:30 am ET: New York State manufacturing is recovering from record lows in June
An index that tracks manufacturing activity in the New York region recovered from historically weak levels in April and May in June.
The Empire State Manufacturing Index rose from -48.5 in May to -0.2 in June, with companies reporting that activity remained stable in June after deteriorating sharply in the past two months. The pressure was well above the consensus estimate for the index, which should be -29.6 for the month.
A sub-index that tracks future business conditions rose to its highest level in more than a decade, indicating corporate hopes that conditions would improve in the next six months. Other sub-indices that track new orders, deliveries, delivery times, and inventory levels have changed little, and employment levels have decreased slightly.
7:19 am ET Monday: Stock futures prolong losses
Here were the main moves in the markets from 7:19 a.m.CET:
S&P 500 futures (ES = F): 2,972.75, minus 62 points or 2.04%
Dow futures (YM = F): 24,912.00, minus 624 points or 2.44%
Nasdaq futures (NQ = F): 9,497.00, minus 148 points or 1.53%
Crude Oil (CL = F): - $ 0.74 (-2.04%) to $ 35.52 a barrel
Gold (GC = F): - $ 23.40 (-1.35%) to $ 1,713.90 per ounce
10-year Treasury (^ TNX): -3.6 basis points for a return of 0.663%
6:07 p.m. ET Sunday: Stock futures fall more than 1%
Here were the key steps at the start of the overnight US futures session from 6:07 p.m. ET:
S&P 500 futures (ES = F): 2,994.75, minus 40 points or 1.32%
Dow futures (YM = F): 25,200.00, minus 336 points or 1.32%
Nasdaq futures (NQ = F): 9,542.75, minus 102.25 points or 1.06%
Traders wearing masks work on the first day of personal trading since closing during the Coronavirus Disease outbreak (COVID-19) on the New York Stock Exchange (NYSE) in New York, the United States, on May 26, 2020 REUTERS / Brendan McDermid
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