Wall Street bounced in a big way and the S&P 500 inched closer to its biggest quarterly gain since 1998 as investors held out hope for a fast economic recovery, plus more in today’s Closing Bell on Money & Markets.
The Top Story
A spike in coronavirus infections last week sparked a sell-off in equities, but investors continue to expect the Federal Reserve or Congress will step in with more stimulus.
On Monday, all 11 major S&P 500 sub-indexes were in the black, with industrial and material stocks leading gains.
The benchmark index has jumped about 39% since its March lows and is currently trading above its 200-day moving average — and indicator of long-term momentum.
However, BlackRock Investment Institute still downgraded U.S. equities to “neutral,” suggesting risks of fading fiscal stimulus, an extended virus epidemic and renewed U.S-China trade tensions.
Coty Inc. (NYSE: COTY) jumped as much as 13.2% in afternoon trading after the company said it is buying a 20% stake in Kim Kardashian West’s makeup brand for $200 million.
The Dow Jones rose 2.32%. The S&P 500 moved 1.47% higher. The Nasdaq rose 1.20% and the Russell 2000 jumped 3.08%.
Stock Market Update: Closing Bell*
S&P 500: 3,053 (+1.47%)
DOW: 25,595 (+2.32%)
NASDAQ: 9,874 (+1.20%)
RUSSELL 2000: 1,421 (+3.08%)
VIX: 31.78 (-8.49%)
GOLD: $1,783.10 (+0.16%)
BITCOIN: $9,158.90 (+0.40%)
U.S. 10-YEAR YIELD: 0.63% (-0.003%)
*- as of 4:15 p.m.
A Big Win
In this morning’s Opening Bell, we told you to be on the lookout for Southwest Airlines Co. (NYSE: LUV) after the company was upgraded to a buy by Goldman Sachs Group Inc. (NYSE: GS). Shares of Southwest Airlines rose 9.6%.
We also told you about Boeing Co. (NYSE: BA) as the company and Federal Aviation Administration began certification flights for its 737 Max jet on Monday. Boeing shares were trading up 14.4%.
Finally, Facebook Inc. (Nasdaq: FB) started the day down nearly 4% but rallied back into the black despite more advertisers pulling away from the social media giant. Shares of Facebook were up 2.1%.
Golden Nuggets
Gold prices were steady Monday, holding close to an eight-year high hit last week as the rapid spread of the coronavirus threatened to dash hopes of a fast economic recovery.
Spot gold rose as much as 0.1% to $1,772 per ounce, just $6.60 short of its highest price since October 2012, hit last Wednesday. Prices were on track for a third straight month of gains and the biggest quarterly rise in more than four years.
Gold futures moved 0.06% higher to $1,781 an ounce as prices were capped by a steady dollar and Wall Street’s gains.
Silver futures fell 0.57% to trade at $18.06 an ounce. Platinum rose 1.18% to $829 an ounce while palladium jumped nearly 2% to trade at $1,931 an ounce.
Cannabis Corner
The recent slump in cannabis stock prices has created a unique opportunity for investors.
Cannabis stocks have lost roughly a quarter of their value in the first half of 2019 — on top of a 50% drop in 2019 — and, according to Bloomberg, it’s a great time for distressed deals.
But in order for these deals to take place, cannabis companies have to be more realistic about the worth of their assets.
Business Impact of COVID-19 Could Last Into 2021
A roundtable of chief executives from some of the biggest companies believe the business impact of the coronavirus will last until the end of 2021.
A second-quarter report from The Business Roundtable found that a majority of its members don’t expect business conditions to recover until then. Around 27% expect the recovery to stretch beyond even that.
The survey results speak to the uncertainty of the economic climate as the U.S. continues to battle a health disaster that hasn’t been seen in recent memory.
Today’s Big Winners
(as of 3:15 p.m. EDT)
S&P 500: Coty Inc. (NYSE: COTY) +12.6%
Nasdaq: Wynn Resorts Ltd. (Nasdaq: WYNN) +6.6%
Dow: Boeing Co. (NYSE: BA) +11.7%
Today’s Big Losers
(as of 3:15 p.m. EDT)
S&P 500: Noble Energy Inc. (NYSE: NBL) -8.6%
Nasdaq: Zoom Video Communications Inc. (Nasdaq: ZM) -3.4%
Dow: Cisco Systems Inc. (Nasdaq: CSCO) -0.65%
Check back for the most important news and numbers each day after the Closing Bell, only on Money & Markets.