Dow Falls Despite Stimulus Package Agreement
The House passed the historic stimulus bill later in the day
The Dow ended another volatile week with a loss today, falling sharply as the U.S. became the country with the most reported coronavirus cases worldwide. The blue-chip index plunged over 1,000 points at its session lows, with Boeing (BA) the leading laggard. Later in the day, the U.S. House of Representatives passed the $2 trillion stimulus package relief bill to cushion the economic impact caused by COVID-19, but it was not enough to get stocks moving higher. Despite today's drop, all three benchmarks wrapped up weekly wins of 9% or more.
Continue reading for more on today's market, including:
Option traders went big on this chipmaker's stock today.This options strategy is perfect for the volatile climate.Plus, Weight Watchers upgraded; auto stock tries to combat coronavirus; and Cheesecake Factory can't pay rent.
The Dow Jones Industrial Average (DJI - 21,636.78) finished 915.39 points, or 4.1%, lower for the day. Procter & Gamble (PG) finished on top with a 2.6% win, while Boeing (BA) reversed course from yesterday and bottomed out a list of big losers with a 10.3% fall. For the week, the Dow added 12.8%.
The S&P 500 Index (SPX - 2,541.47) fell 88.60 points, or 3.4%,while the Nasdaq Composite (IXIC - 7,502.38) lost 295.16 points, or 3.8%. The S&P 500 gained 10.2% for the week, while the Nasdaq finished with a weekly win of 9.1%.
The Cboe Volatility Index (VIX - 65.54) added 4.5 points, or 7.4%. The VIX lost 0.8% for the week.
5 Items on Our Radar Today
New York City, the de facto epicenter for the U.S. coronavirus cases, plans to build eight temporary hospitals to meet an expected surge in patients, according to Governor Andrew Cuomo. The state estimates that it will be three weeks before hospital capacity demand peaks. (Reuters)Fannie Mae announced that, at the direction of the Federal Housing Finance Agency, it will offer an option for homeowners to defer mortgage payments if they fall behind. (MarketWatch)WW stock fell despite an upgrade from Morgan Stanley.Fiat Chrysler will shift to manufacture face masks.CAKE stock struggled as the company struggles to pay rent.
Oil Snaps Win Streak, Gold Logs Best Week Since 2008
Oil prices fell once again today, rolling in a fifth consecutive week of losses for black gold. Baker Hughes data reported the U.S. oil rig count fell for the week, signaling a decline in production. May-dated crude futures closed down $1.09, or 4.8%, to settle at $21.51 per barrel. For the week, black gold lost almost 5%.
Gold fell going into the weekend, but posted its biggest weekly gain since 2008, as COVID-19's economic impact boosted the precious metal's safe haven appeal. Gold for April delivery fell $26.20, or 1.6%, to settle at $1,625 per ounce. It gained 9.5% on the week.