Stocks extend gains, Dow adds more than 700 points

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Stocks jumped Tuesday morning, adding to gains after Monday’s rebound pushed the S&P 500 to its highest level since March 13. Treasury yields increased and oil prices stabilized after yesterday’s declines.

Early signals that the coronavirus epidemic is stabilizing in major epicentres around the world have contributed to the risk of trade in the markets.

New York State, which has the highest number of cases in the United States, reported roughly the same number of new deaths from COVID-19 Monday at 599 as Sunday. The total number of cases in the state reached more than 130,000, up from just over 122,000 on Sunday.

But in New York City and other coronavirus hotspots across the country, hospitals are still strained with large numbers of patients, and demand for test equipment and health care devices, including fans, remains overwhelming.

Italy, another global epicenter of the epidemic, reported new deaths from the coronavirus on Monday, but new cases have declined, which also underpins a potential mitigation of the epidemic. The death toll in Italy on Monday was 636, up from 525 on Sunday. The number of confirmed cases increased by 3,599, the lowest number of new one-day cases since March 17.

47 new infections with coronavirus, corresponding to the number since Monday for the least of new cases since the end of February. And while Japan remains severely affected by the virus, the country on Tuesday declared a state of emergency and approved a nearly $ 1 trillion stimulus package to help contain the damage caused by the epidemic. “Data-reactid =” 17 “> South Korea reported on Tuesday 47 new infections with coronavirus, corresponding to the number of Monday for the least of new cases since the end of February. And while Japan remains severely affected by the virus, the country declared a state of emergency on Tuesday and approved a nearly $ 1 trillion stimulus package to help limit the damage caused by the epidemic.

Austria is preparing a first wave of business openings early next week, according to Reuters. “Data-reactid =” 18 “> And in other countries, governments have started to work out an exit plan to eliminate social distancing as the coronavirus epidemic begins to decrease, with Austria preparing a first wave of business opening early next week, Reuters said.

Given the more positive turn in the trajectory of the epidemic, some analysts have reinforced their conviction that a recovery in stocks is on the horizon.

“I don’t think this is a bear market rally, it’s a rebound from the depths of [an] overly pessimistic prospects being assessed in a liquidity vacuum, “Tuesday wrote Peter Tchir, head of macro strategy at Academy Securities. “In retrospect, we can see that being bombed every few minutes with the same negative headlines has taken more toll than it should have. “

However, visibility into the direction of the epidemic in the coming weeks remains unclear. And market players are preparing for an influx of disastrous corporate earnings results and economic data reports capturing the period when social distancing and panic around the epidemic were at their worst.

To that end, in a note released Monday afternoon, economists at Capital Economics led by Paul Ashworth said they expected an “unprecedented” annualized 40% drop in US gross domestic product in the second quarter, with a rate unemployment reaching 12.5% ​​in a few months. .

“Even taking into account a recovery in the second half, we estimate that GDP growth for this year as a whole will be -5.0%, with a rebound of 6.5% in 2021,” they said. .

10:38 a.m.ET: actions reduce some gains

Stocks eased after surging at the opening of the market. However, each of the top three indices was still up at least 1%.

The S&P 500’s gains were driven by the energy sector, up 5.5%, as crude oil prices rebounded. A 10% gain in materials company Dow Inc. and a 7.7% increase in American Express stocks drove the Dow up.

Here are the main market movements at 10.38 a.m.ET:

  • S&P 500 (^ GSPC): +51.43 (+ 1.93%) to 2,715.11
  • Dow (^ DJI): +543.75 (+ 2.4%) to 23,223.75
  • Nasdaq (^ IXIC): +86.65 (+ 1.1%) to 8,000.18

  • Gross (CL = F): + $ 0.50 (+ 1.92%) to $ 26.58 per barrel

  • Gold (GC = F): + $ 0.10 (+ 0.01%) to $ 1,694.00 per ounce

  • 10-year treasury (^ TNX): + 8.3 bps for a yield of 0.761%

9:47 a.m.ET: Exxon Mobil cuts investment plans by $ 10 billion due to falling crude oil prices

XOM) said Tuesday it is cutting its investment plans by 30%, or $ 10 billion, with cash investments now expected to total about $ 23 billion. Most of the cuts will take place at the Permian base in west Texas and New Mexico and will impact drilling and fracturing activities in the region. “Data-reactid =” 38 “> Oil major Exxon Mobil (XOM) said Tuesday it is cutting its capital spending plans for the year by 30%, or $ 10 billion, and cash investment is expected now total about $ 23 billion. Most of the cuts will take place in the Permian base of west Texas and New Mexico and will impact drilling and hydraulic fracturing. activities in the area.

Cash operating expenses will also be cut by 15 percent this year, the company said in a statement.

“The long-term fundamentals underlying the company’s business plans have not changed – the population and demand for energy will increase and the economy will rebound,” said CEO Darren Woods in a statement. “Our capital allocation priorities also remain unchanged. Our objective is to continue to invest in projects favored by the industry in order to create value, conserve cash for the dividend and make appropriate and prudent use of our balance sheet. “

9:31 a.m.ET: Stocks open higher, heading for second consecutive session of gains

Here are the main market movements at 9:31 a.m.ET:

  • S&P 500 (^ GSPC): +88.35 (+ 3.32%) to 2,752.03

  • Dow (^ DJI): +886.78 (+ 3.91%) to 23,566.77

  • Nasdaq (^ IXIC): +318.57 (+ 2.68%) to 8,125.32

  • Gross (CL = F): + $ 0.33 (+ 1.27%) to $ 26.41 a barrel

  • Gold (GC = F): – $ 0.10 (-0.01%) to $ 1,693.80 per ounce

  • 10-year treasury (^ TNX): + 8.3 bps for a yield of 0.761%

FILE – This Wednesday, April 1, 2020, an archive photo shows the marquee of the Iowa Theater, closed in response to the COVID-19 coronavirus outbreak, on John Wayne Drive in Winterset, Iowa. Congressionally approved $ 349 billion program to help small businesses devastated by the coronavirus epidemic is expected to be spent quickly after it opened on Friday, April 3, 2020, in part because large franchisees and multi-ownership companies are ready to claim a disproportionate share as soon as the money begins to flow. (Photo AP / Charlie Neibergall)

Sentiment for US small businesses collapsed last month, setting a new grim record amid the turmoil caused by the coronavirus crisis. The National Federation of Independent Businesses’ optimism index fell 8.1 points to 96.4, the organization said Tuesday – as expected in a global pandemic that forces governments to shut down businesses and keep consumers at home. “Data-reactid =” 77 “> The sentiment of American small businesses cratered last month, setting a new sinister record amid the disruption caused by the coronavirus crisis. The National Federation of Independent Business’ optimism index fell 8.1 points to 96.4, the organization said Tuesday – in line with what might be expected during a global pandemic that forces governments to shut down and keep consumers at home.

7:12 a.m. EST Tuesday: Equity futures indicate significantly higher opening

Here are the main market movements, at 7:12 a.m.ET: Tuesday:

  • S&P 500 Futures (ES = F): up 89 points, or 3.37% to 2,733.5

  • Dow Futures (YM = F): up 829 points, or 3.69% to 23,317.00

  • Nasdaq Futures (NQ = F): up 249.25 points, or 3.1% to 8,279.00

  • Gross (CL = F): + $ 0.82 (+ 3.14%) to $ 26.90 per barrel

  • Gold (GC = F): + $ 12.80 (+ 0.76%) to $ 1,706.70 per ounce

  • 10-year treasury (^ TNX): + 7.1 bps for a yield of 0.749%

6:01 p.m. Monday ET: Equity futures retreat after rebound

Here are the main actions taken at the start of the night session for American equity futures, starting at 6:02 p.m. ET Monday:

  • S&P 500 Futures (ES = F): down 5 points, or 0.19% to 2,639.50

  • Dow Futures (YM = F): down 49 points, or 0.22% to 22,439.00

  • Nasdaq Futures (NQ = F): down 19.5 points, or 0.24% to 8,010.25

NEW YORK, NY – MARCH 12: The statue of George Washigton is seen in front of the New York Stock Exchange on March 12, 2020. in New York. The Dow Jones industrial average fell 2,352.60 points, a drop of nearly 10% and the largest since 1987. (Photo by Pablo Monsalve / VIEWpress / Corbis via Getty Images)

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