Plus   Neg

U.S. Stocks Moving Mostly Higher After Early Volatility

wallstreet oct01 25mar20 lt

After showing a lack of direction earlier in the session, stocks have moved mostly higher over the course of the trading day on Wednesday. The major averages have all climbed into positive territory, extending the massive rally seen in the previous session.

Currently, the Dow is up 747.77 points or 3.6 percent at 21,452.68, the Nasdaq is up 62.70 points or 0.9 percent at 7,480.56 and the S&P 500 is up 47.41 points or 1.9 percent at 2,494.74.

The spike by the Dow, which is adding to its biggest percentage gain since 1933, is partly due to a substantial advance by shares of Boeing (BA).

Boeing is currently up by 32.2 percent after a report from Reuters said the aerospace giant plans to restart 737 MAX production by May, ending a months-long halt triggered by two fatal crashes.

Fellow Dow component Nike (NKE) is also sharply higher after the athletic footwear and apparel maker reported better than expected fiscal third quarter results and said sales in China have rebounded since the coronavirus outbreak in the country has eased.

The advance by the broader markets comes following news that Senate leaders and the White House have reached an agreement on a $2 trillion stimulus bill.

Senate Majority Leader Mitch McConnell, R-Ken., announced the agreement very early this morning, saying he expects the legislation to pass later today.

McConnell described the bill as a "war-time level of investment" in the country, providing financial assistance to individuals and companies amid the ongoing coronavirus pandemic.

The Republican leader's Democratic counterpart, Senate Minority Leader Chuck Schumer, D-N.Y., also praised the bill, which he said would provide "unemployment compensation on steroids."

Schumer also claimed the final bill would provide increased oversight of a proposed $500 billion corporate bailout fund, which had been a key sticking point among Democrats.

The Senate could pass the bill as soon as today, although the stimulus package would still need to be approved by the Democrat-controlled House before heading to President Donald Trump's desk.

Sector News

Commercial real estate stocks have moved sharply higher over the course of the session, driving the Dow Jones U.S. Real Estate Index up by 7 percent. The index continues to rebound by the eight-year closing low set on Monday.

Substantial strength has also emerged among housing stocks, as reflected by the 6.5 percent spike by the Philadelphia Housing Sector Index.

Oil stocks have also shown a significant move to the upside on the day, driving the NYSE Arca Oil Index up by 5.6 percent. The strength in the sector comes as the price of crude oil has climbed back near the unchanged line after coming under pressure earlier in the session.

Brokerage, transportation, and steel stocks are also seeing considerable strength in mid-day trading, moving higher along with most of the other major sectors.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved sharply higher during trading on Wednesday. Japan's Nikkei 225 Index surged up by 8 percent, while Hong Kong's Hang Seng Index jumped by 3.8 percent.

Meanwhile, the major European markets have seen considerable volatility on the day. While the German DAX Index is currently up 0.1 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index are up by 2.5 percent and 2.6 percent, respectively.

In the bond market, treasuries have shown a lack of direction over the course of the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by less than a basis point at 0.810 percent.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT