https://www.foxbusiness.com/markets/us-markets-march-10-2020Equity markets are bouncing back after their biggest drop since the 2008 financial crisis
By Jonathan GarberFOXBusiness
U.S. equity markets snapped back Tuesday after President Trump backed “very substantial relief” for the areas of the economy hardest hit by the new coronavirus outbreak.
“We are going to take care of, and have been taking care of, the American public and the American economy,” Trump said at a White House press briefing on Monday evening where he floated a payroll tax cut, making sure those infected by COVID-19 don’t miss a paycheck and helping embattled industries, such as airlines and cruise operators. He promised more details this week on "very dramatic" economic initiatives.
TRUMP TO FIGHT CORONAVIRUS ECONOMIC IMPACT WITH PAYROLL TAX CUT PROPOSAL AND OTHER PROGRAMS
All three of the major averages rose more than 3 percent in early trading and crude oil surged by nearly 8 percent. Monday’s slide of more than 7 percent was the steepest for stocks since the 2008 financial crisis, while oil's plunge of more than 24 percent was the largest since the outbreak of the 1991 Persian Gulf War.
Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 24632.93 +781.91 +3.28%
SP500 S&P 500 2830.98 +84.42 +3.07%
I:COMP NASDAQ COMPOSITE INDEX 8205.127641 +254.45 +3.20%
Looking at stocks, airlines and cruise ship companies, some of the hardest-hit groups since the COVID-19 outbreak, were sharply higher in response to Trump’s comments.
Ticker Security Last Change Change %
AAL AMERICAN AIRLINES GROUP INC. 15.73 +0.98 +6.64%
UAL UNITED AIRLINES HLDG. 49.48 +2.71 +5.78%
DAL DELTA AIR LINES INC. 44.88 +1.36 +3.14%
CCL CARNIVAL CORP. 22.79 +1.05 +4.83%
NCLH NORWEGIAN CRUISE LINE HOLDINGS LTD. 20.40 +0.59 +2.99%
Banks, which have been hit hard by expectations of further rate cuts from the Federal Reserve, recouped some of their recent losses while previously high-flying tech names, including Apple and Tesla, saw big gains.
Ticker Security Last Change Change %
BAC BANK OF AMERICA CORP. 22.79 +0.86 +3.92%
JPM JP MORGAN CHASE & CO. 97.25 +3.81 +4.08%
WFC WELLS FARGO & COMPANY 33.77 +1.28 +3.96%
AAPL APPLE INC. 280.20 +14.03 +5.27%
TSLA TESLA INC. 652.25 +44.25 +7.28%
Meanwhile, energy stocks, which were hammered Monday after an oil-price war broke out between Saudi Arabia and Russia, surged as West Texas crude surged 8 percent to $33.65 a barrel.
Ticker Security Last Change Change %
XOM EXXON MOBIL CORPORATION 43.42 +1.56 +3.73%
CVX CHEVRON CORP. 84.78 +4.11 +5.09%
CLR CONTINENTAL RESOURCES 7.83 +0.78 +11.06%
OXY OCCIDENTAL PETROLEUM CORPORATION 13.06 +0.55 +4.40%
On the earnings front, Dick’s Sporting Goods reported better-than-expected fourth-quarter results and announced the removal of its hunt category from 440 more stores.
Ticker Security Last Change Change %
DKS DICKS SPORTING 36.58 +2.10 +6.09%
Heavy selling of U.S. Treasurys caused the yield on the 10-year note to spike by 16.5 basis points to 0.663 percent. On Monday, the entire yield curve finished below 1 percent for the first time on record.
European markets were off their best levels of the day with Britain’s FTSE up 2.8 percent, France’s CAC higher by 2.2 percent and Germany’s DAX gaining 1.9 percent.
In Asia, China’s Shanghai Composite led the way, up 1.8 percent, while Hong Kong’s Hang Seng and Japan’s Nikkei added 1.4 percent and 0.9 percent, respectively.
