Dow Rallies Amid Stimulus Package Hopes

All three indexes finished with wins of 5.5% or more

Deputy Editor
Mar 17, 2020 at 4:30 PM
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The Dow bounced back today, after turning in its third-worst session of all time on Monday. The blue-chip index finished over 1,000 points higher, after the White House reportedly backed a stimulus package of $850 billion in response to the coronavirus pandemic. Plus, investors were encouraged by the Fed's decision to buoy the commercial paper market and boost liquidity with short-term funding. Meanwhile, the S&P 500 and Nasdaq both joined the Dow with gains of over 5.5%.

Continue reading for more on today's market, including:

  • Uber stock stalled after halting all carpool rides in the U.S. and Canada.

  • This pharmaceutical stock rose after an encouraging COVID-19 update.

  • Plus, Amazon's plan to hire more workers; McDonald's closes dine-in areas; video conference technology stock buzzing.

The Dow Jones Industrial Average (DJI - 21,237.31) finished 1,048.8 points, or 5.2% higher for the day. Dow Inc (DOW) paced the 27 winners with a 20.9% win, while Boeing (BA) led the three laggards with a 3.2% drop.

The S&P 500 Index (SPX - 2,529.19) added 143.1 points, or 6%, while the Nasdaq Composite (IXIC - 7,334.78) gained 430.2 points, or 6.2%.

The Cboe Volatility Index (VIX - 75.91) lost 6.8 point, or 8.2%.

closing summary mar 17

nyse nasdaq mar 17

5 ITEMS ON OUR RADAR TODAY

  1. Treasury Secretary Steven Mnuchin announced the Trump Administration was considering sending direct payments to Americans to help corral the economic struggles from coronavirus. Specifics were not disclosed, but a timeline of two-three weeks was established. (MarketWatch)
  2.  The Job Openings and Labor Turnover Survey (JOLTS) showed job openings rising in January, snapping a two-month skid. While this signals a strong labor market to kick off 2020, it does not yet include the disruptions COVID-19 have caused to the job economy. (Reuters)

  3. Amazon.com will hire 100,000 new workers and give existing employees raises.

  4. McDonald's stock fell after announcing closing dine-in areas.

  5. This video conference stock attracted a lot of attention.

earnings mar 17Unusual options activity mar 17

Data courtesy of Trade-Alert

Oil Tumbles, Gold Snaps Skid

Oil slid again today, and more declines are expected to follow as Saudi Arabia and Russia continue their battle for market share. April-dated crude fell $1.75, or 6.1%, to trade at $26.95 per barrel. This marks black gold’s lowest level since February 2016.

Gold turned in a win, snapping a five-day skid thanks to the Fed's decision to establish a commercial paper-funding facility to improve liquidity. April-dated gold futures rose $39.30, or 2.6%, to trade at $1,525.80.

 

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