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S&P 500 rebounds nearly 10% on fiscal stimulus hopes
24-Mar-20 16:15 ET
Dow +2112.98 at 20704.97, Nasdaq +557.18 at 7417.21, S&P +209.93 at 2447.33

https://www.briefing.com/stock-market-update

[BRIEFING.COM] The S&P 500 surged 9.4% on Tuesday, as news that the elusive fiscal stimulus package was close to being agreed to in the Senate spurred a broad-based rebound. The Dow Jones Industrial Average climbed 11.4%, the Nasdaq Composite climbed 8.1%, and the Russell 2000 climbed 9.4%.

All 11 S&P 500 sectors posted strong gains, especially the energy (+16.3%), financials (+12.8%), and industrials (+12.8%) sectors. The consumer staples sector (+4.8%) was the lone sector to advance less than 5.0%.

Lawmakers continued to narrow their differences on the stimulus bill, with Senate Minority Leader Schumer (D-NY) placing negotiations "on the two-yard line" around lunchtime. According to CNBC, the White House is hopeful to have an agreement in principle by "sunset," but noted it was unlikely that an actual Senate vote would take place tonight.

An agreement is needed to restore some confidence for consumers, investors, and businesses during the economic shutdowns across the country. The Fed has already stepped in numerous times to expand credit and liquidity, while President Trump today provided a goal for when he wants the economy to reopen despite the outbreak.

Specifically, President Trump said he would love to have the country open for business by Easter (April 12) but will decide based on expert input from health officials. New York Governor Cuomo, who has been very active in trying to slow the rising rate of infections, empathized with the president but argued that we shouldn't "accelerate the economy at the cost of human life."

Nevertheless, the prospects of fiscal stimulus and possibly having the economy reopen in April, combined with some short-covering activity and a bargain-hunting mindset, helped the market bounce from a deeply oversold condition. Tuesday's huge gains cut the S&P 500's monthly decline to 17.2% and yearly decline to 24.3%.

Chevron (CVX 66.55, +12.33) was among today's largest gainers with shares rising 22.7%, as investors were pleased to hear that the company has no plans to cut its dividend despite the turmoil in the oil market. The company also cut its capital spending plan by $4 billion and suspended its share buyback program. WTI crude rose 1.9%, or $0.44, to $23.93/bbl on Tuesday.

U.S. Treasuries retreated for most of the day but did close off session lows. The 2-yr yield rose eight basis points to 0.37%, and the 10-yr yield rose five basis points to 0.82%. The U.S. Dollar Index declined 0.5% to 101.96. Gold futures rose 6.0% to $1659.80/ozt to extend its weekly advance following some positive-minded commentary out of Goldman Sachs.

Friday's lone economic report was New Home Sales for February, which decreased 4.4% m/m in February to a seasonally adjusted annual rate of 765,000 units (Briefing.com consensus 761,000) from an upwardly revised 800,000 (from 764,000) in January.

The key takeaway from the report is that it shows new home demand was strong in February, but that was before everything changed this month in the U.S. with the coronavirus situation, which is expected to severely weigh on home buying interest in the near term.

Looking ahead, investors will receive Durable Goods Orders for February, the FHFA Housing Price Index for March, and the weekly MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite: -17.3%
S&P 500: -24.3%
Dow Jones Industrial Average: -27.5%
Russell 2000: -34.3%

Market Snapshot
Dow 20704.97 +2112.98 (11.37%)
Nasdaq 7417.21 +557.18 (8.12%)
SP 500 2447.33 +209.93 (9.38%)
10-yr Note -5/32 0.840
NYSE Adv 2677 Dec 240 Vol 1.7 bln
Nasdaq Adv 2831 Dec 460 Vol 4.3 bln

Industry Watch
Strong: Energy, Financials, Industrials
Weak: Consumer Staples

Moving the Market

-- S&P 500 rebounds nearly 10% on fiscal stimulus hopes

-- Senate could reportedly reach a deal in principle tonight

-- President Trump hopes to reopen the economy by Easter (April 12)

-- Market bounces from a deeply oversold condition

WTI crude settles 2% higher
24-Mar-20 15:30 ET
Dow +1810.58 at 20402.57, Nasdaq +493.60 at 7353.63, S&P +185.59 at 2422.99

[BRIEFING.COM] The S&P 500 continues to trade higher by 8.1%, while the Russell 2000 follows behind with a 7.5% gain.

One last look at the S&P 500 sector standings shows energy (+12.7%), financials (+10.9%), and industrials (+10.7%) up more than 10%, while the consumer staples sector (+4.5%) is the lone sector up less than 5.0%.

WTI crude settled up $0.44 (+1.9%) to $23.93/bbl.