Stocks stage furious rally late after national emergency
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[March 14, 2020] By
(Reuters) - Wall Street staged a furious
rally in the waning moments of the session on Friday after U.S.
President Donald Trump declared a national emergency to combat the
rapidly spreading coronavirus, although major averages still suffered
sharp losses for the week.
In a volatile session, all three main indexes jumped more than 6% in
early trading before paring to a gain of as little as 0.55% on the S&P
500 <.SPX> before rallying towards the close as Trump made the
announcement with industry leaders of about $50 billion in federal aid
to fight the disease.
"The initial take, he started talking about $50 billion, the market
asked 'where is that going?'" said Peter Jankovskis, co-chief investment
officer at OakBrook Investments LLC in Lisle, Illinois.
"But as he’s been bringing these various leaders to the front and they
have been talking about what they are doing, that is really what the
market is responding to."
The indexes were still about 20% below record highs hit in mid-February,
and each saw declines of at least 8% for the week. Since hitting the
highs, markets have been besieged with big swings in the market, nearly
matching as many days with declines of at least 1% as all of 2019.
Friday's surge was the biggest one-day percentage gain for the S&P 500
since Oct 28, 2008.
The Democratic-led U.S. House of Representatives will pass a coronavirus
economic aid package on Friday, House Speaker Nancy Pelosi said, but it
was unclear whether Trump and his fellow Republicans would support it.
The Dow Jones Industrial Average <.DJI> rose 1,985 points, or 9.36%, to
23,185.62, the S&P 500 <.SPX> gained 230.38 points, or 9.29%, to
2,711.02 and the Nasdaq Composite <.IXIC> added 673.07 points, or 9.35%,
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Traders work on the floor of the New York Stock Exchange (NYSE)
after the opening bell of the trading session in New York, U.S.,
March 13, 2020. REUTERS/Lucas Jackson
All the main S&P 500 sub-indexes were trading higher, with financial stocks
rising 13.23% as expectations of further liquidity measures by the Federal
Reserve pushed up Treasury yields, in what has become a very thin market.
Oil also looked set to end the week with a silver lining, as both Brent and WTI
crude settled higher after a near-collapse in prices on Monday due to a price
war between Saudi Arabia and Russia. The S&P 500 energy index <.SPNY> added
Travel stocks, hammered in the rout, were trading higher, with the S&P 1500
airlines index up 11.58%
Hotel operators Marriott International Inc <MAR.O>, Hilton Worldwide Holdings <HLT.N>
and Hyatt Hotels Corp <H.N> all gained at least 1%.
Boeing Co <BA.N> jumped 9.92% but suffered its biggest weekly drop in its
history on rising concerns about the company's growing cash burn.
Apple Inc <AAPL.O> rose 11.98% and was among the top boosts to the benchmark S&P
500 and the blue-chip Dow, as the iPhone maker said it would reopen all 42 of
its branded stores in China.
Advancing issues outnumbered declining ones on the NYSE by a 4.73-to-1 ratio; on
Nasdaq, a 2.95-to-1 ratio favored advancers.
The S&P 500 posted 1 new 52-week highs and 120 new lows; the Nasdaq Composite
recorded 2 new highs and 703 new lows.
Volume on U.S. exchanges was 17.10 billion shares, compared to the 13.02 billion
average for the full session over the last 20 trading days.
(Reporting by Chuck Mikolajczak; editing by Jonathan Oatis and Diane Craft)
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