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Wall Street closed sharply higher on Monday following news that several U.S. states are considering opening the economy restricting lockdown measures. Major Eurozone countries are also preparing to return to economic normalcy as the coronavirus pandemic stabilizes. Moreover, the Fed have expanded its monetary stimulus. All three major stock indexes ended in the green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) surging 1.5% or 358.51 points to close at 24,133.78. Notably, 24 components of the 30-stock blue-chip index ended in green while 6 finished in the red. The tech-heavy Nasdaq Composite closed at 8,730.16, gaining 1.1%supported by the strong performance of large-cap tech stocks. Meanwhile, the S&P 500 advanced 1.5% to close at 2,878.48.The Financials Select Sector SPDR (XLF) and Materials Select Sector SPDR (XLB) rallied 3.4% and 2.7%, respectively. Notably, all eleven sectors of the benchmark index closed in the green.
The fear-gauge CBOE Volatility Index (VIX) decreased 7.4% to close at 33.23. A total of 10.64 billion shares were traded on Monday, lower than the last 20-session average of 12.35 billion.Advancers outnumbered decliners on the NYSE by a 3.36-to-1 ratio. On Nasdaq, a 3.66-to-1 ratio favored advancing issues.
Possibility Of Reopening the Economy
Several states in the United States are considering plans to reopen the economy systematically. States like Alaska, Georgia, South Carolina, Tennessee and Texas have already started allowing restaurants, salons, spas and barbershops to serve customers. Mike DeWine, governor of Ohio, set the date of May 12 for retail stores and other service industries to reopen. Andrew Cuomo, governor of New York, said that the economy will be opened in phases. Notably, New York was known as the coronavirus hotspot of the United States.
In Europe, Spain has allowed its citizens to leave their homes for short walks and exercise from May 2. Belgium and Italy will ease restrictions from May 4. In France, the government prepared to ease economic shutdown from May 11. In Asia, India permitted manufacturing and farming to resume in rural areas last week.
Fed Expanded the Scope of Municipal Liquidity Facility
The Fed has expended the scope of its $500 billion stimulus package to states and municipalities to help manage cash flow stresses caused by the coronavirus pandemic. Under the revised scheme, the central bank will purchase up to $500 billion of short-term notes issued by U.S. states (including the District of Columbia), U.S. counties with a population of at least 500,000 residents, and U.S. cities with a population of at least 250,000 residents.
As of Apr 24, 122 S&P 500 members reported first-quarter 2020 earnings results. Total earnings of these companies are down 16.2% from the same period last year on 2.5% higher revenues. Of the total, 64.8% surpassed EPS estimates and 63.1% outpaced revenue estimates. Overall, first-quarter earnings for the S&P 500 Index were projected to be down 15.3% year over year on 1.2% higher revenues. This is in sharp contrast to 4% earnings growth expected in early January.
National Oilwell Varco Inc. (NOV - Free Report) delivered adjusted earnings of $0.14 per share in first-quarter 2020, beating the Zacks Consensus Estimate of $0.10. Total revenues of $1.88 billion underperformed the Zacks Consensus Estimate of $1.98 billion. (Read More)
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Stock Market News for Apr 28, 2020
Wall Street closed sharply higher on Monday following news that several U.S. states are considering opening the economy restricting lockdown measures. Major Eurozone countries are also preparing to return to economic normalcy as the coronavirus pandemic stabilizes. Moreover, the Fed have expanded its monetary stimulus. All three major stock indexes ended in the green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) surging 1.5% or 358.51 points to close at 24,133.78. Notably, 24 components of the 30-stock blue-chip index ended in green while 6 finished in the red. The tech-heavy Nasdaq Composite closed at 8,730.16, gaining 1.1%supported by the strong performance of large-cap tech stocks. Meanwhile, the S&P 500 advanced 1.5% to close at 2,878.48.The Financials Select Sector SPDR (XLF) and Materials Select Sector SPDR (XLB) rallied 3.4% and 2.7%, respectively. Notably, all eleven sectors of the benchmark index closed in the green.
The fear-gauge CBOE Volatility Index (VIX) decreased 7.4% to close at 33.23. A total of 10.64 billion shares were traded on Monday, lower than the last 20-session average of 12.35 billion.Advancers outnumbered decliners on the NYSE by a 3.36-to-1 ratio. On Nasdaq, a 3.66-to-1 ratio favored advancing issues.
Possibility Of Reopening the Economy
Several states in the United States are considering plans to reopen the economy systematically. States like Alaska, Georgia, South Carolina, Tennessee and Texas have already started allowing restaurants, salons, spas and barbershops to serve customers. Mike DeWine, governor of Ohio, set the date of May 12 for retail stores and other service industries to reopen. Andrew Cuomo, governor of New York, said that the economy will be opened in phases. Notably, New York was known as the coronavirus hotspot of the United States.
In Europe, Spain has allowed its citizens to leave their homes for short walks and exercise from May 2. Belgium and Italy will ease restrictions from May 4. In France, the government prepared to ease economic shutdown from May 11. In Asia, India permitted manufacturing and farming to resume in rural areas last week.
Fed Expanded the Scope of Municipal Liquidity Facility
The Fed has expended the scope of its $500 billion stimulus package to states and municipalities to help manage cash flow stresses caused by the coronavirus pandemic. Under the revised scheme, the central bank will purchase up to $500 billion of short-term notes issued by U.S. states (including the District of Columbia), U.S. counties with a population of at least 500,000 residents, and U.S. cities with a population of at least 250,000 residents.
Tech Behemoths to Report Earnings This Week
Tech giants such as Apple Inc. (AAPL - Free Report) , Microsoft Corp. (MSFT - Free Report) and Amazon.com Inc. (AMZN - Free Report) will report earnings results of the last quarter this week. All these stocks carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
As of Apr 24, 122 S&P 500 members reported first-quarter 2020 earnings results. Total earnings of these companies are down 16.2% from the same period last year on 2.5% higher revenues. Of the total, 64.8% surpassed EPS estimates and 63.1% outpaced revenue estimates. Overall, first-quarter earnings for the S&P 500 Index were projected to be down 15.3% year over year on 1.2% higher revenues. This is in sharp contrast to 4% earnings growth expected in early January.
Stocks That Made Headline
National Oilwell Q1 Earnings Beat Estimates, Rise Y/Y
National Oilwell Varco Inc. (NOV - Free Report) delivered adjusted earnings of $0.14 per share in first-quarter 2020, beating the Zacks Consensus Estimate of $0.10. Total revenues of $1.88 billion underperformed the Zacks Consensus Estimate of $1.98 billion. (Read More)
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>