Dow jumps 400, now up 13% on the week, the Fed’s $ 2.3 trillion safety net


Stocks rebounded again on Thursday, the last trading day of the week due to the Good Friday holidays. The latest recovery came after the Federal Reserve announced a $ 2.3 trillion effort to boost local governments and small and medium-sized businesses in its latest initiative to keep the US economy intact as the country struggles the coronavirus crisis. The Dow Jones Industrial Average is on track for its best week in over 80 years.

This is a live blog. Check back for updates.

1:50 p.m .: Crude oil gives up 12% gain, becomes negative as traders await details of OPEC cuts

Oil prices turned negative, reporting a gain of more than 12%, as the street awaited details of possible production cuts from OPEC and its allies, known as OPEC +. Stocks reduced a small portion of their gains when the product fell, but the Dow Jones rose more than 400 points again. WTI crude oil last traded around $ 24.60 a barrel. –Stevens, Fitzgerald

1:20 p.m .: Unemployed claims during coronavirus epidemic at recessionary levels

On Thursday, a record number of jobless claims continued to pile up, with 6.6 million more Americans filing jobless claims last week. This brings the total of three weeks during the coronavirus epidemic to 16.8 million, a number greater than or equal to the cumulative claims made during recessions in 1969, 1980, 1990 and 2001. – Rattner

1:18 p.m .: American Airlines, Starbucks among the actions making the biggest movements at noon

Large stocks in a number of struggling industries, including travel and retail, were among the biggest winners in midday trading. American Airlines and several department stores saw their share prices rise by more than 10% on Thursday. Some energy stocks have also seen big leaps as the market waits for the final say on OPEC cuts. – Delivered

1:10 p.m .: NYSE advances lead decline 13-1

About 13 stocks rose on the New York Stock Exchange for each bear as the market closed a historic week of gains. Overall, 2,747 stocks were up while 202 fell, according to FactSet data. –Imbert

11:55 a.m .: Noon markets: Dow heads for the best week in over 80 years

Around noon, the Dow Jones rose more than 400 points, or 1.9%. The rally boosted the average of 30 stocks by more than 13% for the week, which would be its biggest weekly gain since 1938. These gains come after the Fed announced a series of programs, including loans for small and medium businesses, which will total up to $ 2.3 trillion. –Imbert

11:47 am: Cashin: the Fed gives “a breath of fresh air” to the stock market

The Federal Reserve’s $ 2.3 billion loan commitments to help businesses and state and local governments survive the coronavirus crisis have given the stock market “a breath of fresh air,” said Thursday. Art Cashin trader on CNBC. However, the UBS veteran told “Squawk Alley” that he does not expect a V-shaped recovery – rapid descent, rapid climb – on Wall Street. Cashin said he sees longer time spent at lower levels as a U or even L path. – Stankiewicz, Belvedere

11:16 a.m .: the high-yield bond fund posts the strongest growth since 2008

10:55 am: Markets have rebounded this week and analysts are seeing more buying opportunities, including Starbucks and Raytheon

  • Citi took over Starbucks as a purchase
  • JPMorgan changed Big Lots from neutral to insufficient.
  • Bank of America downgraded Starbucks to buy neutral.
  • Jefferies demoted Anthem not to buy.
  • Citi has taken over Xerox cover as a buyout.
  • UBS downgraded UPS to neutral at purchase.
  • Morgan Stanley demoted Eli Lilly to an overweight weight.
  • Nomura raised its price target on Apple to $ 240 from $ 225.
  • UBS has taken over Raytheon’s cover as a purchase. – Flowering

10:44 am: Oil prices skyrocket after report on Russian-Saudi deal

West Texas futures jumped 12% to $ 28.36 a barrel after Reuters announced that Russia and Saudi Arabia have agreed to cut production. The report, citing two OPEC sources, said total reductions could reach 20 million barrels a day. OPEC and its allies are holding a virtual meeting on Thursday to discuss reducing production as global demand for energy decreases. The Brent European benchmark rose 8.5%. – Stevens, book

10:35 am: Democrats block GOP efforts for unanimous support of $ 250 billion in additional aid for small businesses

Actions peaked after Democrats in Congress blocked a Republican effort to unanimously support $ 250 billion in small business aid. The bill would have paid billions of dollars in aid to small businesses devastated by the coronavirus pandemic. With lawmakers out of Washington, the majority leader in the Senate, Mitch McConnell, attempted to propose the measure by unanimous consent. Senator Ben Cardin, D-Md., Opposed the request. The Dow Jones was on the pace of its best week since 1938 before the bill was blocked. – Fitzgerald, Pramuk

10:30 a.m .: Powell says Fed will not hesitate to support other areas in need

Federal Reserve Chairman Jerome Powell said central bank was ready to support other needy areas amid coronavirus crisis after Fed announced new 2.3 funding initiative trillion dollars for small and large businesses as well as households and state and local governments.

“As we identify other areas, we will not hesitate to move into these areas. In addition, we may find that some of the programs we have announced need to be adjusted and need to be larger … or need to be changed, we will monitor this and [are] very willing to adapt, “said Powell during a webinar for the Brookings Institution on Thursday. – Li

10:20 a.m .: Consumer morale drops, low expectations are lacking

Consumer sentiment has plummeted in the past month, according to a preliminary report from the University of Michigan. The consumer confidence index stood at 71.0, down from 89.1 in March. Economists polled by Dow Jones expected an impression of 75.0.

The drop of 18.1 points is the largest monthly decline on the index ever. The survey of chief consumer economist Richard Curtain said in a statement that sentiment about current conditions has fallen more sharply than expectations about future conditions.

“This suggests that the drop in confidence would have been worse if it hadn’t been expected that Covid-19 infection and death rates would soon peak and allow the economy to restart,” said Curtain . – Delivered

10:10 a.m .: Powell says economic recovery could be “robust”

Federal Reserve Chairman Jerome Powell said Thursday that the economic recovery from the coronavirus-induced shutdown “may be robust” despite the severe recession.

Powell spoke at a webinar for the Brookings Institution. In prepared remarks, Powell said, “When the spread of the virus is under control, businesses will reopen and people will go back to work. There is every reason to believe that the economic rebound, when it occurs, can be robust. ” – Beetle, Pound

9:57 a.m .: Title gains accelerate, continue to continue well

The Dow Jones climbed to trade around 450 points, 1.9%, higher on Thursday morning. Gains at the start of the session continue to recover for stocks this week, with the top three US indices gaining double digits.

The Dow Jones has now jumped about 13.5% since Monday. The S&P 500 has now gained more than 12% this week and the Nasdaq has climbed about 11.4%. – Delivered

9:42 a.m .: Inventories rise at opening, Dow up more than 300

The main indices all opened higher after the Federal Reserve announced a $ 2.3 trillion program to help support the economy. The Dow Jones gained 377 points, or about 1.6%, at the start of the session. The S&P 500 and the Nasdaq Composite rose 1.7% and 1.2% respectively. – Delivered

9:35 a.m .: High-yield bonds rise after Fed intervenes

The iShares ETF that tracks high-yield corporate bonds rose 6.6% after the Fed announced a new facility that could buy high-yield bond ETFs. Some strategists believed the Fed would stay away from high-yield corporate debt, including John Briggs, chief strategy officer at NatWest.

“The main street stuff looks good. I just didn’t think they would get into junk bond bonds. It will be fair to be the next to complain, “said Briggs.

The possible move by the central bank to riskier assets is likely to fuel speculation that the Fed may buy stocks during this crisis.

“It worries them that they are going lower every week in the capital structure,” said Briggs. Does that mean the numbers they see so badly? “- Pound, Domm

9:10 am: Cramer: “The Fed is on its game”

Following the Federal Reserve’s announcement of $ 2.3 trillion in programs to support the faltering US economy in the midst of the coronavirus crisis, CNBC’s Jim Cramer said he was impressed with the firm’s actions central bank.

“This Fed is the most aggressive Fed. They don’t want to be known as the reason we got into a depression, “said Cramer on” Squawk Box “on Thursday. ” I’m very impressed. The Fed is on its way and that’s what it takes because we have to fight a depression, we have to open America to business. ” – Fitzgerald

9:08 am: Fed announces details of $ 2.3 trillion program and Main Street loans

The Fed announced details of its small business loan program on Thursday as part of a larger effort to support the economy during the pandemic.

The total program – which includes loans on Main Street, payroll protection and other measures to support small businesses and state and local governments – could total $ 2.3 trillion, said the central bank.

The Main Street loans would target businesses with up to 10,000 employees and $ 2.5 billion in revenue for 2019, and would range between $ 1 million and $ 25 million, with certain restrictions. The total amount for this program is $ 600 billion. – Beetle, Pound

8:47 a.m .: Unemployment claims continue their record pace

This week’s reading of the first jobless claims amounted to 6.6 million, the Labor Ministry announced on Thursday. Claims expected for the week ending April 4 were $ 5 million.

This is the third consecutive week of initial multi-million unemployment claims that had never occurred before the coronavirus crisis. This brings the total of initial requests in the past three weeks to more than 16 million, out of an active population of more than 164 million Americans. – Delivered

8:15 a.m .: Pfizer up 1% after report says it identified lead drug candidate

Pfizer shares rose before opening bell Thursday morning after research and development chief Mikael Dolsten told The Wall Street Journal that laboratory results had identified a promising but early drug candidate to fight against the new coronavirus. Dolsten told the Journal that the drug works by preventing the replication of the disease, suggesting that the investigational drug may slow or stop the spread of the disease. The drug candidate is still in the early stages and human testing will be required to demonstrate that it works and is ready for generalized administration. Pfizer shares rose 1.1% in pre-market trading. –Franck

8:10 am: Trump says he wants to reopen the economy with a “big bang”

President Donald Trump said Wednesday night at a White House press conference that the US economy may be reopened in stages as the coronavirus pandemic recedes, but “it would be nice to open with a great blow “. The administration is anxious to restart the sectors of the economy that have been halted by the deadly pandemic. However, Trump warned that he was drawing on the advice of medical experts and “we must be on the slope” of the epidemic before reopening the economy. – Li

8:08 a.m .: Starbucks down 3% after second-quarter earnings announcement

Starbucks stock prices fell more than 3% in pre-market trading on Thursday after the coffee company said Wednesday that it expects fiscal second quarter profits to be about half of what they were a year ago due to the spread of COVID-19 in China and the American Starbucks said it expected adjusted earnings from 28 cents to 32 cents per share for the second quarter, compared to 60 cents per share in the second quarter of 2019. “These estimates reflect the impact of lost sales for the period as well as additional expenses for partner salaries and benefits, store operations and other business-related activities. COVID-19 epidemic, “said the company.
Bank of America analyst Gregory Frankfurt lowered the title to neutral Thursday after publication. He writes, “We are concerned that consumer purchases will come from the rear of Covid-19 in a much more fragile condition. We expected temperate purchases of more discretionary purchases, including premium drinks. “- Franck

7:57 a.m .: Bank of America recording reveals Wall Street wall between caution and performance amidst a virus

On March 25, during a conference call with the equity and derivatives traders of Bank of America, the bank’s global equity manager, Fabrizio Gallo, outlined the challenges for those who plan to stay home, especially if the crisis lasted a long time. “At some point, you have to make a decision,” Gallo told the group on the phone. “And the reason why this is called a critical function is because senior managers have a critical requirement to provide appropriate and orderly markets. And we cannot provide proper and orderly markets if 99% of the population decides that they are not comfortable. The tape obtained by Scott Wapner from CNBC underscored Wall Street’s balance between precaution and performance in the midst of the pandemic. –Wapner, Li

7:52 a.m .: Cruise and airline stocks continue for a good week

Cruise lines and airlines, which had some of the biggest successes in liquidation as global travel demand crunched, were pushing higher in pre-market trade to continue a recent streak of solid days. American Airlines and United both increased pre-market trade by more than 2% after posting double-digit gains on Wednesday. Delta rose 3.1% after rising 4.4% on Wednesday. Royal Caribbean gained 2.6% in the premarket trade and rose more than 50% for the week. Carnival and Norwegian both increased by more than 3%. –Delivered

7:50 a.m .: Disney shares cross the market threshold after Disney + exceeds 50 million subscribers

Disney shares rose more than 5% in pre-market trade after the media company said that Disney +, its new video streaming service, now had more than 50 million subscribers. This is almost double what Disney said on February 4, when it said in its Q1 earnings report that Disney + reached 26.5 million subscribers in the quarter. The jump was caused by global orders for home stays, as well as the introduction of service in India, where 8 million people have signed up. As Disney takes advantage of more people at home, the stock has dropped about 30% this year as the company has been forced to close its parks. –Fitzgerald

7:48 a.m .: Unemployment claims expected to increase by 5 million

7:42 a.m .: Dow up nearly 30% from March low

The recent rally in stocks has caused the top three averages to all exceed 20% of their March lows. The Dow Jones Industrial Average is up 28.66% from its 52-week low on March 23. The S&P 500 is up over 25% from its March low and the Nasdaq Composite is up 22% from its March 23 low. The three averages are still down 20.75%, 18.96% and 17.75% from their February peak, respectively. This week, the Dow Jones is up 11.3% for its last trading day of the week. The S&P 500 is up 10.5% this week and the Nasdaq Composite has gained 9.74% since Monday. –Fitzgerald

7:36 a.m .: Equity futures slide ahead of weekly jobless claims

US equity futures fell on Thursday – the last trading day of the week – as investors prepared for the latest unemployment data in the United States. The Dow Jones Industrial Average lost about 150 points, or 0.7%. The S&P 500 and Nasdaq 100 futures contracts also fell. The downward movement comes after a higher tear on Wednesday, which pushed the Dow and the S&P 500 up more than 10% for the week. –Imbert

With reports from Yun Li, Scott Wapner and Tom Franck.

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