Stocks moved higher Tuesday on signs the coronavirus outbreak is slowing in some of the biggest U.S. hot spots, including New York, before paring big early gains and finishing in the red for the day, plus more in today’s Closing Bell on Money & Markets.
The Top Story
Wall Street was on track for another day of gains after health officials said the coronavirus pandemic may kill fewer Americans than was earlier projected, but that all changed in the last hour of trading.
The Dow was up 900 points at one point during the day, but finished out barely in the red. It closed the day down 26 points, or 0.1%.
The S&P 500 was flirting with its biggest two-day gain in nearly two weeks following a 7% jump on Monday, but early gains lost steam as trading wound down for the day. While the index is up around 20% since reaching March lows, it is still around 19% below its mid-February record high as demand for airlines, automobiles and hotels continue to fall.
Tuesday’s early gains were led by the energy, materials and financial sectors, with an aggressive round of U.S. fiscal and monetary stimulus in the past month also boosting risk appetite.
New York Gov. Andrew Cuomo said social distancing measures to help stop the spread of the COVID-19 virus appeared to be working.
“The rally is sentimental and a little premature because if we lift these lockdown measures too soon and try to resume economic activity, we’re going to get a very severe pandemic rebound,” Indranil Ghosh, chief executive officer of Tiger Hill Capital in London, said.
Wall Street’s VIX Volatility Index has steadily retreated from 12-year peaks, but volatility is expected to remain high as companies prepare to report an expected slide in first-quarter earnings and outline more drastic plans to bolster cash reserves.
The Dow Jones and S&P 500 fell 0.1%, while the Nasdaq Composite lost 0.3%.
Stock Market Update: Closing Bell*
S&P 500: 2,659 (-0.1%)
DOW: 22,653 (-0.1%)
NASDAQ: 7,881 (-0.3%)
GOLD: $1,684 (-0.6%)
BITCOIN: $7,147.87 (-0.7%)
U.S. 10-YEAR YIELD: 0.72%
*- as of 4:12 p.m.
A Big Win
In this morning’s Opening Bell, we told you to be on the lookout for 3M Co. (NYSE: MMM) after the company reached a deal to import more N95 safety masks from China. Shares of 3M jumped 2.7%.
Tesla Inc. (Nasdaq: TSLA) shares moved 5.6% higher after the company said it was close to revealing a new Model 3 sedan with a longer range than its base model. The new car is being produced at Tesla’s Shanghai facility in China.
Tuesday morning, Macy’s Inc. (NYSE: M) announced its chief financial officer, Paula Price, is leaving the company in May. The news came less than a week after the retailer was dropped from the S&P 500. Shares of Macy’s were 4.8% higher.
Golden Nuggets
Gold futures retreated amid profit-taking in the futures market Tuesday. Gold started the trading day flat after hitting a 7 ½-year high overnight.
The price of gold was down 0.6% to trade at $1,684 an ounce. Silver futures moved up 0.9% to $15.31 an ounce.
Platinum futures were 0.8% higher to $738.20 an ounce while palladium was 1.9% higher at $2,117.20 an ounce.
Cannabis Corner
Cannabis firm iAnthus Capital Holdings Inc. (Over-the-Counter: ITHUF) said it is unable to meet interest obligations totaling $4.4 million on $157.5 million in debt.
The company also postponed its quarterly earnings report, according to a press release. It has also launched a probe into possible conflicts of interest regarding the company’s CEO, Hadley Ford.
iAnthus operates 31 cannabis dispensaries in 11 states.
Mnuchin Eyeing $250 Billion More for Small Business Relief
Treasury Secretary Steven Mnuchin has spoken with members of Congress in an attempt to get $250 billion more in loans for small businesses.
He said it’s an effort to help those businesses adversely impacted by the coronavirus.
At the direction of President @realDonaldTrump, I've spoken with @SenateMajLdr, @SenSchumer, @SpeakerPelosi, and @GOPLeader to secure an additional $250 billion for the #PPPLoan program to make sure small businesses get the money they need!
— Steven Mnuchin (@stevenmnuchin1) April 7, 2020
In March, Congress approved a $350 billion loan program to help small businesses as part of a $2.2 trillion stimulus package.
Today’s Big Winners:
Kohl’s Corp. (NYSE: KSS) +20.3%
Capri Holdings Ltd. (NYSE: CPRI) +19.1%
American Airlines Group Inc. (Nasdaq: AAL) +7.6%
Today’s Big Losers:
Gilead Sciences Inc. (Nasdaq: GILD) -3.9%
Boeing Co. (NYSE: BA) -4.6%
Equinix Inc. (Nasdaq: EQIX) -4.4%
Check back for the most important news and numbers each day after the Closing Bell, only on Money & Markets.