Dow soared at the best of times since 1933; markets are betting on recovery

The stocks staged a monster rally on Tuesday, the defeated Dow Jones Industrial Average posting its best day since 1933, as Wall Street bets that warring political factions Washingtons will merge around a $ 2 trillion stimulus package to fight the effects of coronavirus.

The package talks, intended to support shaken consumers forced to stay home from work and throw financial lifelines in key industries, have helped major benchmarks reverse a bloodshed that has drawn them deep into a bear market.

The Dow rallied more than 11% to close more than 2,100 points just a day after a liquidation that virtually wiped out all the gains made since the election of President Donald Trump and its best day in nearly 90 years. The S&P 500 index had its strongest session since 2008, while the Nasdaq achieved its best performance in 7 days.

The economic and political damage of COVID-19 has fueled an increasing debate about how quickly the United States can return to a semblance of normalcy. With his chances of re-election likely to be defined by a resumption of the crisis, President Donald Trump called on Tuesday for the economy to restart by April 12, but market analysts have doubts about this calendar.

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The current crisis is, fundamentally, a health policy problem resulting from the pandemic, wrote this week Eric Stein, co-director of fixed income at Eaton Vance. And it will be the health policy that will cause us to flatten the curve and, hopefully, lower the projected death rates and help us return to normalcy.

according to Johns Hopkins data.“data-reactid =” 41 “> The damage caused by the epidemic has taken a heavy toll on small local businesses, as well as the largest companies in the country, because residents practice social distancing and avoid leisure and travel These tremors, so temporary, societal dislocations aim to slow the spread of the coronavirus, which made sick more than 46,000 people in the United States Tuesday morning, according to Johns Hopkins data.

bonds of eligible companies with companies and exchange-traded funds, and purchases of securities backed by commercial mortgage loans. “data-reactid =” 42 “> The repeated blocking of the Senate bill came in the wake of the liberation of the American Federal Reserve from its new comprehensive measures aimed at maintaining the credit of businesses and ensuring the proper functioning of other critical parts of the economy. program included unprecedented measures from the Fed, including bonds of eligible companies with companies and exchange-traded funds, and purchases of securities backed by commercial mortgage loans.

Stein wrote that the crisis can also benefit from good fiscal policy, overall, to help move the economy forward, helping businesses, municipalities and workers. In my opinion, monetary policy plays a key role in ensuring the functioning of the markets and in providing working capital credits to the economy as a whole.

Stocks jumped Tuesday as investors bet on a stimulus package offsetting Congress.

S&P 500 (^ GSPC): +208.99 (+ 9.34%) to 2,446.39

Dow (^ DJI): +2,093.11 (+ 11.26%) to 20,685.04

Nasdaq (^ IXIC): +557.18 (+ 8.12%) to 7,417.86

Gross (CL = F): + $ 0.49 (+ 2.10%) to $ 23.85 per barrel

Gold (GC = F): + $ 90.10 (+ 5.75%) to $ 1,657.70 an ounce

10-year treasury (^ TNX): +5.2 bps for a yield of 0.8160%

Stocks continued to climb during the Tuesday session. The Dow and the S&P 500 each advanced more than 7%.

The energy sector led the gains in the S&P 500, the sector outperforming with an increase of 11.7%. Chevron dominated the Dow, followed by Boeing.

Here are the main market developments, from 1.20 p.m. AND:

• S&P 500 (^ GSPC): 2,396.11, + 158.71 (+ 7.09%)

• Dow (^ DJI): 20,128.28, +1,536.35 (+ 8.26%)

• Nasdaq (^ IXIC): 7,245.23, +384.57 (+ 5.59%)

• Gross (CL = F): # 23.14 per barrel, – $ 0.22 (-0.94%)

• Gold (GC = F): $ 1,652.10, + $ 84.50 (+ 5.39%)

• 10-year treasury (^ TNX): yield 0.837%, up 7 basis points

One of the most curious features of the current market volatility has been gold (GC = F), which did not behave as a refuge when traders liquidate positions. The Feds Big Bertha stimulus, which several market commentators have called QE-infinity, means that bullion can be sold in the short term (especially with the weaker dollar), and investors are starting to focus on ugly fundamentals to come.

The story continues

The International Air Transport Association (IATA) has again revised its expectations for damage to the airline industry’s revenues from the coronavirus epidemic and is now seeing an even deeper reduction over last year .

Air passenger revenues could drop by $ 252 billion in 2020, down 44% from 2019, IATA said in a statement on Tuesday. Global airlines will need $ 200 billion in cash support just to get by, the organization said.

In early March, IATA lost $ 113 billion in revenue this year to the passenger airline industry. However, this prediction came before global authorities began to impose strict travel restrictions that undermine the international airline market.

The airline industry is facing its most serious crisis. In a few weeks, our previous worst case scenario looks better than our latest estimates, said IATA CEO Alexandre de Juniac in a statement. But without immediate government relief, there will be no industry left.

Quarantine and cooling Jokes aside, Netflix (NFLX) is getting a huge boost from the shutdown of the U.S. economy. More and more states and cities forcing businesses to shut down and keep people on the street mean more observers and higher subscriptions. The market capitalization of the streaming giants is now higher than that of Disneys (DIS) which, in theory, should also see a coronavirus increase its Disney-Plus platform. “Data-reactid =” 98 “>Quarantine and cooling Jokes aside, Netflix (NFLX) is getting a huge boost from the shutdown of the U.S. economy. More and more states and cities forcing businesses to shut down and keep people on the street mean more observers and higher subscriptions. The market capitalization of the streaming giants is now higher than that of Disneys (DIS) which, in theory, should also see a coronavirus increase its Disney-Plus platform.

Netflixs inventory rose more than 1% over the session to around $ 364, while Disney jumped nearly 12% on day above $ 94. The two are out of their 52-week highs in the middle of the carnage in the market, but Netflix is ​​decidedly closer to its peak, at nearly $ 394.

Political betting site Smarkets shows that former Vice President Joe Biden and President Donald Trump have a 46% chance of winning the general election in November, Paddy Power showing that the President slightly outweighs his opponent. As of February, most predictive markets saw Trump at the top at 60%, but the Biden outbreak and the coronavirus crisis have undermined his chances.

According to Sarbjit Bakhshi, head of political markets for the Smarkets:

“President Trump trumps the media daily about the coronavirus epidemic. It will be one of the most serious of his presidency. How he handles this global crisis and its effects on his expensive American economy will be fresh in voters’ minds in November if the 2020 elections go ahead as planned. If it closes the United States for months, the economy will be damaged, if it reopens after a few weeks, lives could be endangered.

This comes as Anthony Scaramucci, the former antagonistic communications director of Trumps who became antagonistic, said that he now believed that Trump had an equal chance of winning in November, largely due to his rebound from his initial shaky response to the epidemic.

Meanwhile, Biden has caught fire even from some Democrats for its lack of visibility as the crisis deepens.

The US manufacturing sector is doing as badly as expected in a pandemic, with IHS / Markits PMI for March showing the sector contracted by more than expected. Instant reading plunged to a record low of 39.1, while reading 49.4 in February and well below consensus forecasts.

For markets, much of March’s data is likely to be incorporated into prices, with investors now focusing on stimulus efforts and a timetable for when the economy (and life in America) can begin. to normalize.

Growing hope for consensus on a coronavirus bailout has pushed the Dow Jones up over 1,000 points at the opening bell as investors hoped Congress and the White House would break the blockage political while the pandemic kept the economy closed.

Here are the main market movements at 9:30 a.m.ET:

• S&P 500 (^ GSPC): 2,361.77, +124.37 (+ 5.56%)

• Dow (^ DJI): 19,753.78, +1,161.85 (+ 6.25%)

• Nasdaq (^ IXIC): 7.207.26, +346.59 (+ 5.05%)

• Gross (CL = F): $ 24.31 per barrel, +0.95 (+ 4.07%)

• Gold (GC = F): $ 1,671.90, + $ 104.30 (+ 6.65%)

• 10-year treasury (^ TNX): yield 0.8580, up 9.4 basis points

7:15 a.m. EST Tuesday: Equity futures rally should reach its limit

The contracts for the S&P 500, the Dow and the Nasdaq extended the gains on Tuesday morning in an offer that was at least temporary in order to recover significant losses from the last sessions.

Here are the main market movements at 7:15 a.m.ET:

• S&P 500 Futures (ES = F): 2.33.50, + 5.09% or + 113 points

• Dow Futures (YM = F): 19,408.00 + 4.93% or +911 points

• Nasdaq Futures (NQ = F): 7,321.5, + 4.82% or +337.00 points

• Gross (CL = F): $ 24.60 per barrel, + 5.31% or + $ 1.24

• Gold (GC = F): $ 1,662.40 an ounce, + $ 94.80 or + 6.05%

• 10-year Treasury Note (^ TNX): yield 0.805%, up 3.8 bp

6:02 p.m. ET Monday: Equity futures open higher, offsetting some losses from the regular session

Futures for each of the top three indexes rose Monday evening as investors turned to Washington makers for relief from the escalating domestic coronavirus epidemic.

Here are the main market developments, from 6:02 p.m. AND:

• S&P 500 Futures (ES = F): 2,246.5, + 1.17% or +26 points

• Dow Futures (YM = F): 18,733.00, + 1.28% or +236 points

• Nasdaq Futures (NQ = F): 7,062.75, + 1.12% or + 78.25 points

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