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Stock Market News for Jul 8, 2020

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Wall Street closed lower on Tuesday after giving some of the gains it made on Monday on account of growing concerns on resurgence of the coronavirus. Tepid outlook of Eurozone also dented investors' sentiments. All three major stock indexes ended in the red.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) tumbled 1.5% or 396.85 points to close at 25,890.18., reversing two-days of winning streak. Notably, 28 components of the 30-stock blue-chip index ended in the red while 2 closed in green.

Major loser of the Dow was The Boeing Co. (BA - Free Report) dropping 4.8%. The Boeing carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The tech-heavy Nasdaq Composite ended at 10,343.89, shedding 0.9% due to weak performance by large-cap tech stocks, reversing its fifth consecutive winning streak. During intraday session the tech-laden index posted a new all-time high of 10,518.98.

Meanwhile, the S&P 500 tanked 1.1% to end at 3,145.32, reversing its fifth successive winning streak. The Energy Select Sector SPDR (XLE) and the Financials Services Select Sector SPDR (XLF) plunged 3.2% and 2.1%, respectively. Notably, nine out of eleven sectors of the benchmark index closed in negative territory while two in positive territory.

The fear-gauge CBOE Volatility Index (VIX) was up 5.3% to 29.43. A total of 10.44 billion shares were traded on Tuesday, lower than the last 20-session average of 12.58 billion. Decliners outnumbered advancers on the NYSE by a 2.73-to-1 ratio. On Nasdaq, a 2.63-to-1 ratio favored declining issues.

Resurgence of the Coronavirus

More than 20 U.S. states have reported a spike in coronavirus new cases in the last week with hospitalization growth rate jumped over 5%. Arizona, California, Texas and other states are facing problems as their hospitals rapidly filling up. According to Johns Hopkins University, the United States have more than 2.93 million confirmed coronavirus cases and more than 130,000 deaths.

Tepid Outlook

The European Commission lowered its projection for the Eurozone's growth this year. Eurozone's growth is expected to contract 8.7% this year compared with a contraction of 7.7% estimated earlier. The Organization for Economic and Cooperation and Development (OECD) stated that global unemployment will reach the highest level since the Great Depression this year and may not return to pre-pandemic levels until 2022.

In the United States, Marc Short, chief of staff of Vice President Mike Pence, said that the government wants Congress to pass another stimulus package by the first week in August. However, the size of the stimulus will be $1 trillion or less. Notably, Congress passed a $2.2 trillion pandemic relief program in March.

Economic Data

The Department of Labor reported that 6.5 million people either found jobs or were rehired in May. Moreover, job openings increased to 5.4 million in May from 5 million in April. The number of layoffs and firings declined to 1.8 million in May from 7.7 million in April and 11.5 million in March.

Stocks That Made Headline

NVIDIA's Ampere A100 GPUs to Debut on Google Cloud

Graphic chip behemoth NVIDIA Corp. (NVDA - Free Report) yesterday announced that its recently-launched A100 Tensor Core graphics processing unit (GPU) is now available on Google Cloud, a division of Alphabet Inc. (GOOGL - Free Report) . (Read More)

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The Boeing Company (BA) - free report >>

NVIDIA Corporation (NVDA) - free report >>

Alphabet Inc. (GOOGL) - free report >>

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