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Stock market climbs 7% on encouraging COVID-19 signs
06-Apr-20 16:20 ET
Dow +1627.46 at 22679.99, Nasdaq +540.15 at 7913.23, S&P +175.03 at 2663.68

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

[BRIEFING.COM] The stock market rallied more than 7% to start the shortened trading week, as sentiment was buoyed by encouraging signs that the COVID-19 outbreak may be improving. The Dow Jones Industrial Average (+7.7%) and Russell 2000 (+8.2%) set the pace, followed by the Nasdaq Composite (+7.3%) and S&P 500 (+7.0%).

The positive bias was formed overnight in the futures trade when data out of Europe showed countries reporting fewer coronavirus-related deaths, offering hope that the U.S. could follow a similar path. As the death toll in the U.S. approaches 10,000, New York Governor Cuomo said he's seeing signs that possible flattening of New York's caseload curve is starting to emerge.

Social distancing efforts have also provided an improved statistical outlook regarding total U.S. deaths, although the trajectory of the coronavirus is subject to change. Nevertheless, these encouraging signs provided the market some relief that contributed to a broad-based, and steady, advance.

The market closed at session highs with the 11 S&P 500 sectors advancing between 3.9% (consumer staples) and 8.8% (information technology).

The gains don't necessarily suggest the market is in the clear, though. New coronavirus data could upend today's positive sentiment, a fourth phase stimulus bill could run into some hurdles, and investors don't know what news will come out of the oil industry this week.

OPEC+ postponed its production-cut meeting to later this week, which contributed to WTI crude pulling back 7.5%, or $2.13, to $26.21/bbl today. A decision might wait until Friday after a G-20 emergency energy meeting, according The Wall Street Journal.

In other news, the Fed announced the establishment of a facility that will purchase small business loans that are guaranteed by the White House's Payroll Protection Program (PPP). Delta Air Lines (DAL 22.32, -0.16, -0.7%) said it expects Q2 revenue to be down 90%.

U.S. Treasuries started the week on a lower note amid the risk-on mindset displayed in the stock market. The 2-yr yield increased eight basis points to 0.27%, and the 10-yr yield increased nine basis points to 0.68%. The U.S. Dollar Index increased 0.2% to 100.73.

Investors did not receive any notable economic data on Monday. Looking ahead, investors will receive the JOLTS - Job Openings report for February and the Consumer Credit report for February on Tuesday.

Nasdaq Composite -11.8% YTD
S&P 500 -17.6% YTD
Dow Jones Industrial Average -20.5% YTD
Russell 2000 -31.8% YTD

Market Snapshot
Dow 22679.99 +1627.46 (7.73%)
Nasdaq 7913.23 +540.15 (7.33%)
SP 500 2663.68 +175.03 (7.03%)
10-yr Note -29/32 0.667
NYSE Adv 2625 Dec 270 Vol 1.4 bln
Nasdaq Adv 2730 Dec 542 Vol 3.8 bln

Industry Watch
Strong: Information Technology, Financials, Consumer Discretionary
Weak: Consumer Staples

Moving the Market

-- Stock market rallies more than 7% amid signs that the coronavirus situation is improving, caseload curve could soon flatten

-- Broad-based relief rally

-- Crude prices fall after OPEC+ postpones emergency meeting

WTI crude pulls back 7%
06-Apr-20 15:30 ET
Dow +1288.15 at 22340.68, Nasdaq +441.37 at 7814.45, S&P +145.70 at 2634.35

[BRIEFING.COM] The S&P 500 currently trades higher by 5.9%, and the Russell 2000 trades higher by 6.9%.

One last look at the S&P 500 sectors shows consumer discretionary (+6.8%), materials (+6.9%), financials (+6.3%), industrials (+6.2%) with gains more than 6%, while the consumer staples sector (+2.9%) is the lone sector up less than 3%.

WTI crude settled down $2.13 (-7.5%) to $26.21/bbl after OPEC and its allies postponed their production meeting to later this week.