President Trump speaks on how the U.S. is handling the coronavirus outbreak economically speaking during a briefing at the White House.
U.S. equity markets snapped back Tuesday after President Trump backed “very substantial relief” for the areas of the economy hardest hit by the new coronavirus outbreak.
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“We are going to take care of, and have been taking care of, the American public and the American economy,” Trump said at a White House press briefing on Monday evening where he floated a payroll tax cut, making sure those infected by COVID-19 don’t miss a paycheck and helping embattled industries, such as airlines and cruise operators. He promised more details this week on “very dramatic” economic initiatives.
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All three of the major averages rose more than 3 percent in early trading and crude oil surged by nearly 8 percent. Monday’s slide of more than 7 percent was the steepest for stocks since the 2008 financial crisis, while oil’s plunge of more than 24 percent was the largest since the outbreak of the 1991 Persian Gulf War.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 24239.82 | +388.80 | +1.63% |
| SP500 | S&P 500 | 2813.67 | +67.11 | +2.44% |
| I:COMP | NASDAQ COMPOSITE INDEX | 8175.558549 | +224.88 | +2.83% |
Looking at stocks, airlines and cruise ship companies, some of the hardest-hit groups since the COVID-19 outbreak, were sharply higher in response to Trump’s comments.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAL | AMERICAN AIRLINES GROUP INC. | 15.48 | +0.73 | +4.98% |
| UAL | UNITED AIRLINES HLDG. | 49.30 | +2.52 | +5.39% |
| DAL | DELTA AIR LINES INC. | 43.76 | +0.24 | +0.55% |
| CCL | CARNIVAL CORP. | 22.41 | +0.67 | +3.08% |
| NCLH | NORWEGIAN CRUISE LINE HOLDINGS LTD. | 19.82 | +0.01 | +0.05% |
Banks, which have been hit hard by expectations of further rate cuts from the Federal Reserve, recouped some of their recent losses while previously high-flying tech names, including Apple and Tesla, saw big gains.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BAC | BANK OF AMERICA CORP. | 22.59 | +0.66 | +3.01% |
| JPM | JP MORGAN CHASE & CO. | 97.31 | +3.87 | +4.14% |
| WFC | WELLS FARGO & COMPANY | 33.49 | +1.01 | +3.11% |
| AAPL | APPLE INC. | 279.44 | +13.27 | +4.99% |
| TSLA | TESLA INC. | 636.86 | +28.86 | +4.75% |
Meanwhile, energy stocks, which were hammered Monday after an oil-price war broke out between Saudi Arabia and Russia, surged as West Texas crude surged 8 percent to $33.65 a barrel.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| XOM | EXXON MOBIL CORPORATION | 42.89 | +1.03 | +2.46% |
| CVX | CHEVRON CORP. | 84.50 | +3.83 | +4.75% |
| CLR | CONTINENTAL RESOURCES | 7.70 | +0.65 | +9.22% |
| OXY | OCCIDENTAL PETROLEUM CORPORATION | 13.00 | +0.49 | +3.92% |
On the earnings front, Dick’s Sporting Goods reported better-than-expected fourth-quarter results and announced the removal of its hunt category from 440 more stores.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DKS | DICKS SPORTING | 36.50 | +2.02 | +5.86% |
Heavy selling of U.S. Treasurys caused the yield on the 10-year note to spike by 16.5 basis points to 0.663 percent. On Monday, the entire yield curve finished below 1 percent for the first time on record.
European markets were off their best levels of the day with Britain’s FTSE up 2.8 percent, France’s CAC higher by 2.2 percent and Germany’s DAX gaining 1.9 percent.
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In Asia, China’s Shanghai Composite led the way, up 1.8 percent, while Hong Kong’s Hang Seng and Japan’s Nikkei added 1.4 percent and 0.9 percent, respectively.
