The major indices are closing lower on the day after the late day rally fizzled out.
Starting the last hour of trading, the major indices were trading at:
S&P index 2584.95, down -45.12 points or -1.72%
NASDAQ index 7648.96, down -148.57 points or -1.91%
Dow 22046.95, down -505.18 points or -2.24%
The closing levels are lower at:
S&P index fell -88.62 points or -3.37% to 2541.45
NASDAQ index fell -295.15 points or -3.79% to 7502.37
Dow fell -915.39 points or -4.06% to 21636.78
Over the last hour of trading, the major indices each traded to new day highs, but quickly sold off and are closing near the session lows (with the NASDAQ just off the day’s lows). In the last hour of trading, the:
S&P index went from a high of 2615.91 to a low of 2534.99 or a range of 80.92 points
Nasdaq index went from a high of 7716.24 to a low of 7497.02 or a range of 219.2 points
Dow went from a high of 22327 to a low of 21602 or a range of 725 points
Although lower for the day for all major indices closed with gains.
Leading the way was the Japan’s Nikkei with a gain of +17.14%. In the US, the biggest gainer was the Dow up by 12.84%. It was helped by a move back higher in Boeing. Boeing shares went from $97 on Monday to around $180 at the highs. It is closing today around $162. The gain for the week was at 70.48%
The S&P index rose by 10.26%. The NASDAQ gained 9.05%.
Other big gainers for the week were:
Delta Air Lines +38.36%
United Airlines +33.8%
Home Depot up 25.05%
intuitive surgical, +24.41%
Nike up 23.51%
American Express up 19.56%
United Technologies up 17.69%
United health up 17.04%
In Europe the biggest gainer was the German DAX which rose 7.88%.
Yesterday both the S&P index and the Dow closed higher for the 2nd day in a row. The NASDAQ did not join them as it fell in trading yesterday. However all 3 indices are closing higher in trading today with solid gains. The indices closed near/at the session highs.
The final numbers are showing:
S&P index rose 151.74 points or 6.13% at 2627.30
NASDAQ index rose 413.24 points or 5.6% at 7797.53
Dow industrial average rose 1351.62 points or 6.38% at 22552.17.
The final hour of trading – which has been very volatile of late – once again saw the major indices rock ‘n’ roll ‘n:
S&P index, was at 2594.44 at 3 PM ET. The high in the last hour reached 2637.01. The low reached 2574.92. That is a range of 63 points.
NASDAQ index was trading at 7686.41 at 3 PM. The high in the last hour reached 7809.82. The low extended to 7639.95. That is a range of 170 points.
Dow industrial average was trading at 22227.47 at 3 PM. The high in the last hour reached 22595. The low reached 21964.24. That is a range of 631 points in the last hour.
The indices are also closing well off there lows for the day (the major indices did not go negative today). Looking at the % low, % high and % Close, the % lows for the indices reached:
S&P index, +1.02%
NASDAQ index, +1.06%
Dow industrial average, +1.07%
Of the lows from Monday:
The Nasdaq is up 17.77%
The S&P index is up 20.31%
The Dow is up 24.06%
Of course those gains are impressive, but understand the gains are off much lower levels. The major indices are still well off the highs for the year.
US Senators have reached a bi-partisan deal on a $2 trillion bill that includes payments to just about everyone. Canadian parliament also agreed on an $82B package.
Even with that US equity futures are 1.8% lower. That can change in a hurry but every bit of ‘good’ news from the Fed or Treasury is met with a wave of bad news about the virus.
The numbers from Spain were jarring today with 7937 new cases from 5,552 yesterday and 443 new deaths. With 3,434 dead, they’ve now surpassed the official count from China.
Numbers are also rising in Tokyo and the threat of a lockdown there is growing.
Over news hits home like Prince Charles testing positive and NBA player Karl-Anthony Towns revealing his mother is in a coma.
I think this is an important moment for risk assets in general. I believe the Fed’s extraordinary actions have averted an acute financial crisis but the scale of the economic damage is coming into focus and even $2 trillion isn’t enough to fix it.
All told, I think the rally in equities and unwind in the dollar can continue for another day or two. If I’m wrong and it falls apart today, then it can get ugly fast.
It was a great day to buy stocks as the market bets that Congress will come through with some kind of stimulus. There was also some major bargain hunting and short-covering. The four best performers on the S&P 500 were: L Brands, American Airlines, MGM Resorts, Norwegian Cruise Lines. Energy was the top-performing sector.
Every bottom starts with a bounce but not every bounce is a bottom. That said, bottoms are built on skepticism so my skepticism is only adding fuel to the fire.
The rally today is slightly bigger than the one that led Trump to email out this:
The major indices close lower on the day. The Dow is on pace for the worst month since 1931. The major indices to close off session lows. The Dow was down -960 points and is closing down -597.94 points. Other indices had similar rebounds.
The NASDAQ index tried to close higher, but gave up small gains in the last few minutes of trading to end down -0.27%.
The final numbers are showing:
S&P index fell -67.52 points or -2.93% to 2237.40. The low for the day was down -4.91%. The high was down -0.18% on the day.
Nasdaq fell -18.846 points or -0.27% at 6860.67. The low for the day fell -3.61%. The high for the day extended up to +1.53% on the day.
The Dow close down -558.05 points or -3.04% to 18591.93. The low for the day was down -5.01%. The high reached up to -0.28% on the day.
Price action is getting increasingly volatile. Each of the indices jumps up and down at large increments suggesting liquidity conditions are not right. Today, the New York Stock Exchange traded all shares electronically as their floor was closed to specialists and traders.