Stocks Eye Notable Weekly Gains on 3-Day Surge

The U.S. Senate managed to pass a stimulus bill

by Emma Duncan

Published on Mar 27, 2020 at 2:46 PM

Despite just having come off its worst week since 2008, stocks suffered big losses again Monday, after the U.S. stimulus bill failed to pass in the Senate twice. The Dow, S&P 500, and Nasdaq recovered by Tuesday, however, as the gridlock in D.C. loosened, and hopes to pass the economic bill grew. Not only did the blue-chip index surge to its best daily percentage gain since 1933, but by Thursday's close, it grabbed its first three-day gain in over a month after a stimulus agreement was reached. Regardless, Friday's outlook was grim, though all three indexes were on track for notable weekly gains.

Retailer Reels on Guidance Breakdown

Although sales of pantry goods increased, Target (TGT) withdrew its first-quarter guidance and full-year outlook this past week, while also canceling remodel plans for its stores. On the flip side, rising Amazon.com (AMZN) slammed sellers on its platform for violating its price-gouging rules, kicking off some 4,000 e-tailers. 

Auto stocks also made moves this past week, with Ford (F) claiming it would be restarting production on some of its more profitable vehicles, such as its F-150 full-sized pickup, as early as April 6. In a different realm, Fiat Chrysler Automobiles (FCAU) said it is shifting one of its factories to produce face masks for healthcare workers.

FAANG, Social Media Stocks Drive Headlines

Technology and social media stocks have been making headlines as well, mostly due to the current self-isolation climate the world is now in. A large majority of those making moves have been FAANG names, including Apple (AAPL), which earlier in the week announced it is no longer limiting customers to two devices on online iPhone purchases. Meanwhile, Facebook (FB) noted that while ad sales have taken a hit, online traffic has surged. Similarly, social media name Twitter (TWTR) withdrew its first-quarter operating revenue forecast, saying the outbreak has negatively affected ad sales as well, despite an increase in active users.

Looking Into April

This past week we took a closer look at the 25 best S&P 500 stocks since 2009, and how to avoid pessimism as a contrarian entry point. We also dove into historic volatility (HV) on the SPX after a stock market crash.

Looking ahead, the close of March and beginning of April welcomes a full schedule next week, as Wall Street continues to slog through a coronavirus-induced slowdown. Jobs data will take center stage, with the ADP employment report on Wednesday and nonfarm payrolls data capping off the week on Friday. There are also a few quarterly earnings reports on tap next week, with Walgreens Boots Alliance (WBA) and Chewy (CHWY) taking center stage.


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