Site icon Money & Markets, LLC

7/7 Closing Bell: Wall Street Eases After Strong Rally as COVID-19 Cases Surge

Closing Bell

After logging its longest streak of gains this year, the S&P 500 retreated slightly on Tuesday as investors were hit with a sharp increase in coronavirus cases, hampering the chances of a rapid economic rebound, plus more in today’s Closing Bell on Money & Markets.

The Top Story

As the S&P 500 index fell back from its recent gains, the tech-heavy Nasdaq composite hit a fresh high before retreating again. The tech-heavy index was boosted by shares of Microsoft Corp. (Nasdaq: MSFT) and Apple Inc. (Nasdaq: AAPL).

The Dow was weighed down by cyclical stocks like Goldman Sachs Group Inc. (NYSE: GS) and Boeing Co. (NYSE: BA).

Coronavirus cases took center stage as New York broadened its travel quarantine for visitors to three more states and Miami rolled back its reopening.

Bank stocks, whose performance is tied to the outlook for the economy, fell over 3%. Travel-related stocks also fell. The S&P 1500 airlines index plummeted nearly 5%.

Gains for technology and communications services capped declines on the S&P 500.

The Dow Jones fell 1.51%. The S&P 500 moved 1.08% lower and the Russell 2000 was off by 1.91%. The Nasdaq fell 0.86%.

Stock Market Update: Closing Bell*

S&P 500: 3,145 (-1.08%)
DOW: 25,890 (-1.51%)
NASDAQ: 10,343 (-0.86%)
RUSSELL 2000: 1,417 (-1.77%)
VIX:
29.44 (+5.2%)
GOLD: $1,809.30 (+0.88%)
BITCOIN: $9,212.01 (-0.99%)
U.S. 10-YEAR YIELD: 0.63% (-0.051)

* as of 4:15 p.m.

A Big Win

In this morning’s Opening Bell, we told you about Ayro Inc. (Nasdaq: AYRO) after the company reported completing its factory expansion. That will allow the company to produce up to 600 electric vehicles per month. Shares of Ayro were up 10.8%.

We also mentioned watching Vivint Solar Inc. (NYSE: VSLR) after the news hit that the company was being acquired by rival Sunrun Inc. (Nasdaq: RUN) for around $1.46 billion. Shares of Vivint rose over 38%.

Finally, we told you to be on the lookout for Novavax Inc. (Nasdaq: NVAX) as the company said it has been selected to deliver up to 100 million doses of its coronavirus vaccine. Novavax rose 31.6%.

Golden Nuggets

Gold prices rebounded on Tuesday as spot gold came within striking distance of the key $1,800 level due to a surge in coronavirus cases sparking increased demand for safe-haven precious metals.

Spot gold jumped more than 0.6% to more than $1,795 per ounce in afternoon trading. Gold futures crossed the mark and traded up 0.9% to $1,809.10 per ounce.

Earlier in the day, gold reached its highest level since November 2011 at $1,796 per ounce.

Silver futures moved 0.2% higher to trade at $18.62 per ounce. Platinum surged up 2.7% to $860.60 while palladium fell 0.5% to $1,942 per ounce.

Cannabis Corner

Competition for retail shelf space is heating up in the cannabis marketplace.

According to Marijuana Business Daily, new brands and new products continue to rise, but the growth in the number of retail locations has not kept pace.

Some retailers have shifted to a pay-to-play model, making companies pay a fee to put their products on the shelf. That fee ranges from $500 to $15,000 per month for premium shelf space on cannabis retailers’ shelves.

White House Eyeing August for Next Stimulus Bill

The White House is leaning on Congress to pass another stimulus package to help businesses during the coronavirus pandemic by August.

According to Bloomberg, talks on a new bill are expected to start this month with the Trump administration looking at a $1 billion spending cap.

Among the provisions being tossed around are a payroll tax cut, liability reform, tax incentives for businesses to adapt to the pandemic and a possible back-to-work bonus.

The House of Representatives is scheduled to take its summer recess beginning Aug. 3 with the Senate to start a week later. Senate leaders said they want to have a bill on the president’s desk before then.

Today’s Big Winners:

S&P 500: Rollins Inc. (NYSE: ROL) +6.7%

Nasdaq: Check Point Software Technologies Ltd. (Nasdaq: CHKP) +3.9%

Dow: Walmart Inc. (NYSE: WMT) +6.8%

Today’s Big Losers:

S&P 500: United Airlines Holdings Inc. (Nasdaq: UAL) -7.5%

Nasdaq: American Airlines Group Inc. (Nasdaq: AAL) -6.9%

Dow: Boeing Co. (NYSE: BA) -4.8%


Check back for the most important news and numbers each day after the Closing Bell, only on Money & Markets.