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S&P 500 closes higher but loses steam into the close
25-Mar-20 16:25 ET
Dow +495.64 at 21200.61, Nasdaq -33.56 at 7383.65, S&P +28.23 at 2475.56

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

[BRIEFING.COM] The S&P 500 advanced as much as 5.1% on Wednesday, as investors continued to buy beaten-up shares of companies after the Senate agreed to a revised stimulus plan, but the market faltered into the close amid some political drama and profit taking. The benchmark index finished up 1.2% for the session.

The Dow Jones Industrial Average (+2.4%) outperformed on the back of Boeing (BA 158.73, +31.05, +24.3%). The Russell 2000 increased 1.3%, while Nasdaq Composite declined 0.5%.

An agreement was reached in the early hours of the morning, but a vote in the Senate was delayed today due to a minor drafting error in the bill. There was some hope that the House would then approve the bill with a unanimous consent resolution despite lingering complaints in order to provide financial relief for Americans and businesses as soon as possible.

All S&P 500 sectors were on pace to close in positive territory, but sentiment soured after Senator Sanders threatened to hold up the coronavirus bill and demand new restrictions on the $500 billion fund for corporations. Rep. Alexandria Ocasio-Cortez also warned she may oppose the unanimous consent resolution, which could further delay financial relief.

The stimulus isn't going to help slow down the rate of coronavirus infections, but it may speed an economic recovery if the nationwide efforts to curb the virus prove successful. Granted, there's still uncertainty about that outlook, but the market has gotten anxious about getting funding to the businesses and workers who need it most right now.

By session's end, eight of the 11 S&P 500 sectors still closed higher, led by the industrials (+5.3%), energy (+4.5%), and real estate (+4.5%) sectors. The communication services sector (-1.6%) was dragged lower by an acknowledgement from Facebook (FB 156.21, -4.77, -3.0%) that it has seen a weakening in its ads business.

Boeing shares surged 24%, as the company stands to benefit from the stimulus bill that will rescue the airline industry. Reports indicated the company could also receive direct aid from Washington and that the company aims to restart production of the 737 MAX by May.

Nike (NKE 79.01, +6.68, +9.2%) shares rose 9% after the company beat revenue estimates and said it's seeing improving market conditions in China, Japan, and Korea. Apple (AAPL 245.52, -1.36, -0.6%) slipped with the broader market and amid a Nikkei Asian Review report suggesting it might consider delaying the launch of the 5G iPhone by months.

U.S. Treasuries finished mixed with shorter-dated maturities posting gains that drove yields on the four-week bill (-6 bps to -0.05%) and three-month bill (-4 bps to -0.03%) negative. The 2-yr yield declined seven basis points to 0.30%, while the 10-yr yield increased four basis points to 0.86%. The U.S. Dollar Index declined 1.2% to 100.86. WTI crude rose 2.5%, or $0.60, to $24.53/bbl.

Reviewing Wednesday's economic data:

February durable goods orders increased 1.2% (Briefing.com consensus -1.4%). Excluding transportation, durable goods orders declined 0.6% (Briefing.com consensus -0.2%).
The key takeaway from the report is that business spending was soft in February, which is disappointing in and of itself, but all the more disappointing knowing that it is going to collapse now in the face of the shutdown measures adopted to stop the spread of the coronavirus.
The FHFA Housing Price Index increased 0.3% in March after increasing 0.6% in February.
The weekly MBA Mortgage Applications Index dropped 29.4% following an 8.4% decline in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report, the third estimate for Q4 GDP, and the Advance reports for International Trade in Goods, Retail Inventories, and Wholesale Inventories for February on Thursday.

Nasdaq Composite: -17.7%
S&P 500: -23.4%
Dow Jones Industrial Average: -25.7%
Russell 2000: -33.5%

Market Snapshot
Dow 21200.61 +495.64 (2.39%)
Nasdaq 7383.65 -33.56 (-0.45%)
SP 500 2475.56 +28.23 (1.15%)
10-yr Note 0/32 0.845
NYSE Adv 2327 Dec 573 Vol 1.8 bln
Nasdaq Adv 2179 Dec 1222 Vol 4.6 bln

Industry Watch
Strong: Energy, Industrials, Real Estate
Weak: Communication Services, Information Technology, Consumer Staples

Moving the Market

-- Stock market loses steam into the close amid some political drama that could delay the stimulus bill

-- S&P 500 closed higher, while the Nasdaq slipped into the red

-- Boeing (BA) carried the Dow higher

-- Shorter-dated Treasuries posted gains

WTI crude settles 2.5% higher
25-Mar-20 15:25 ET
Dow +1154.01 at 21858.98, Nasdaq +176.97 at 7594.18, S&P +107.65 at 2554.98

[BRIEFING.COM] The S&P 500 currently trades higher by 4.4% around the 2550 level.

One last look at the S&P 500 sectors shows industrials (+8.6%), real estate (+7.4%), and utilities (+6.5%) leading today's advance, while the communication services sector (+1.1%) falls behind.

WTI crude settled higher by $0.60 (+2.5%) to $24.53/bbl. On a related note, weekly crude oil inventories increased by 1.63 mln barrels after increasing by 1.95 mln barrels during the previous week.