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U.S. equity markets gained Monday morning as Wall Street looks to rebound from its worst week since the financial crisis.
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The Dow Jones Industrial Average was up 240 points, or 1 percent, in the opening minutes while the S&P 500 and Nasdaq Composite were higher by 0.9 percent and 1.1 percent, respectively. The small rally comes after a volatile overnight session saw Dow futures swing by more than 1,100 points and the U.S. 10-year yield sink to a record low 1.03 percent.
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Last week, the Dow Jones Industrial Average tumbled more than 3,500 amid coronavirus fears. Both the Dow and S&P 500 are trying to avoid an eighth straight day of losses, something that hasn’t happened since the Friday before the 2016 election.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 25450.78 | +41.42 | +0.16% |
| SP500 | S&P 500 | 2974.18 | +19.96 | +0.68% |
| I:COMP | NASDAQ COMPOSITE INDEX | 8641.295483 | +73.93 | +0.86% |
Looking at stocks, airlines were lower after more signs the outbreak will take a toll on business. American Airlines and Delta Air Lines announced the cancellation of service to and from Milan through late April and United Airlines CEO Oscar Munoz said the airline would “likely” need to cut more flights from its schedule.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UAL | UNITED AIRLINES HLDG. | 58.62 | -2.97 | -4.82% |
| DAL | DELTA AIR LINES INC. | 45.09 | -1.04 | -2.25% |
| AAL | AMERICAN AIRLINES GROUP INC. | 17.87 | -1.18 | -6.19% |
Casino operators Wynn Resorts and MGM International fell after Macao, the gaming capital of the world, reporting gross gaming revenue plunged by a record 87.8 percent year over year to 3.1 billion patacas ($386.5 million) in February.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WYNN | WYNN RESORTS LIMITED | 106.84 | -1.14 | -1.05% |
| MGM | MGM RESORTS INTERNATIONAL | 23.87 | -0.69 | -2.81% |
Cruise operators Carnival Corp., Royal Caribbean and Norwegian Cruise Line slid following the news Japanese operator Luminous Cruise filed for bankruptcy amid a slew of cancellations caused by the outbreak.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CCL | CARNIVAL CORP. | 31.82 | -1.64 | -4.90% |
| RCLH | n.a. | n.a. | n.a. | n.a. |
| NCL | n.a. | n.a. | n.a. | n.a. |
Meanwhile, Apple shares gained after Oppenheimer said the company’s “products and services will prove more resilient than competitive products in uncertain times” and upgraded shares to “outperform.”
General Electric shares were higher after J.P. Morgan Chase upgraded shares to “neutral” and raised its price target to $8 from $5. Also on Monday, former GE CEO Jack Welch died at the age of 84.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 282.25 | +8.89 | +3.25% |
| GE | GENERAL ELECTRIC COMPANY | 11.00 | +0.12 | +1.10% |
Commodities were sharply higher with West Texas Intermediate crude oil up 1.8 percent at $45.55 a barrel and gold climbing by 2.3 percent to $1,602 an ounce.
European markets were mixed with Germany’s DAX and France’s CAC both down 0.7 percent and Britain’s FTSE higher by 0.2 percent.
Overnight, a monthly purchasing managers’ index released Monday by Caixin magazine showed Chinese factory activity fell to 40.3 in February from 51.1 in January as the outbreak forced the temporary closure of facilities around much of the country. A separate report released Saturday by China’s National Bureau of Statistics showed a plunge to 35.7 from 50. Still, business confidence rose to a five-year high amid hopes Beijing would provide stimulus to cushion the economy.
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Markets rallied across Asia as China’s Shanghai Composite surged 3.2 percent, Japan’s Nikkei jumped 1 percent and Hong Kong’s Hang Seng added 0.6 percent.
