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Stocks Gain as Market Awaits for Coronavirus Stimulus Package Details – Barron's, Barrons.com

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Stocks Gain as Market Awaits for Coronavirus Stimulus Package Details – Barron's, Barrons.com
              

                  

                  

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    : PM : Stocks are at their highest levels of the day on Wednesday afternoon after a choppy morning. Wall Street is processing news that Senate leaders and the White House reached an agreement on a $ 2 trillion stimulus bill.       

    Shortly after midday, the          Dow Jones Industrial Average

  •       was up almost points, or about 4.3%, rebounding from negative territory in the morning. A gain at the close Wednesday would mark the first consecutive upward moves since early February, following (Tuesday’s near-record) .4% surge .

    •       

    The          S&P

  •       and          Nasdaq Composite       were up 2.5% and 1.3%, respectively. Both also soared on Tuesday as it became clear that a compromise on a stimulus package was close.

    •       

    The bill, which is expected to be voted on by the Senate Wednesday afternoon, will enhance unemployment benefits and send checks directly to homes. It will also offer loans to hard-hit businesses and fund more resources for hospitals.

                 

    The price of          WTI crude       oil rose slightly to about $ a barrel. The yield on the 12 -year Treasury note ticked down 2 basis points, or hundredths of a percentage point, to 0. (%) – Despite the increase in government borrowing required by the coming stimulus bill. The price of gold fell 1.6% to $ 1, 799 an ounce after surging in recent days.

                  

    A key focal point for investors now is what is in the bill, and which companies stand to benefit.

          

                 Boeing

  •       (BA) stock was up % on hopes that the legislation would help it manage through its current problems, while shares of              Delta Air Lines

    •       (DAL),              American Airlines       (AAL), and              United Airlines       (UAL) were up (%,) (%, and (%, respectively.)       

                 Target       (TGT) sales were off 6% after the big-box retailer withdrew its forecast and said it would scale back planned investments. Even though Target has seen an increase in sales as shoppers rush to stock their shelves, the retailer has also seen higher costs tied to increasing pay and benefits for workers and keeping stores stocked and clean.

          

                 Nike       (NKE) shares surged 19% following the release of its fiscal third-quarter results . The apparel company noted that it is beginning to see a recovery in China, where it had closed stores amid the coronavirus outbreak there.

          

                 Facebook       (FB) shares slipped 2% after the company said Tuesday that despite increased engagement on its site, ad revenue has dipped — echoing comments social-media rival (Twitter (TWTR) made earlier this week .       

                 Occidental Petroleum       (OXY) shares climbed 7% after the company said it was cutting its chief executive’s pay by 90% and that other employee salaries will be cut by % as the company tries to preserve cash amid low oil prices. Occidental slashed its dividend earlier this month.

          

    Write to

  • (Carleton English at) [email protected] and Nicholas Jasinski at [email protected]       

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