Stock Market Update Monday, May 4th, 2020
Stocks were down early today, extending last week’s losses.
The rough start came after news that Warren Buffett dumped airline stocks.
There were also concerns of conflict between the U.S. and China after Secretary of State Mike Pompeo said there was “significant amount of evidence” that the virus came from a lab in Wuhan.
Stocks opened lower then continued to slide in the first 15 minutes of trading.
The major indices bounced back and then chopped around for almost 5 hours.
But in the last hour of trading, stocks broke out and finished near highs of the day.
The rally came after the White House shot down a CDC document that revealed the potential for 2,500 COVID-19 deaths a day.
But a White House Spokesman aid that the document was “not a White House document nor has it been presented to the Coronavirus Task Force or gone through inter agency vetting.”
Traders seemed to like the news. The late session rally helped the major indices turn positive, and stocks ended the day with small gains.
Here’s where the major indices ended the day:
- The S&P finished with a 0.4% gain. Up 12 points, the S&P ended at 2,843.
- The DOW ended 0.1% higher. Adding 26 points the DOW closed at 23,750.
- The NASDAQ was up 1.2%. With a 106 point gain the NASDAQ finished at 8,711.
Crude Oil (CL) rallied for the 4th day in a row. With a 3.8% gain, Crude Oil ended the day at $20.53 a barrel.
Airline stocks took a beating after Warren Buffett said that he dumped shares for Berkshire Hathaway because of COVID-19.
United (UAL), American Airlines (AAL) and Delta (DAL) were all down more than 5.0%.
Tyson Foods (TSN) was an earnings loser today, reporting worse than expected numbers. The stock ended the day with a 7.8% loss.
Here is the economic calendar for the week:
Real Time Economic Calendar provided by Investing.com.
This Stock Market Update was provided by Rockwell Trading Services LLC.