Stock Market Update Tuesday, May 12th, 2020
Stocks were all over the place in overnight trading and managed to start the U.S. session higher.
After a quick pop higher in the first 5 minutes of trading stocks dropped and chopped around until the afternoon.
Then things got ugly…stocks couldn’t hold onto early gains and were in a free fall into the close.
There wasn’t one specific catalyst that led to the sell off. But in addition to “profit taking” there were a few headlines that were troubling.
During the day Dr. Anthony Fauci testified before the Senate Health Committee. The Director of the National Institute of Allergy and Infectious Diseasses said that it will be awhile before a usable vaccine is available and that the U.S. will likely face more “suffering and death” if states reopen too quickly.
There were also rumors that Los Angeles is planning on extending the L.A. county stay at home order for another 3 months.
And in the afternoon there was also a Senate proposal by Republicans to impose sanctions on China for not cooperating with COVID-19 investigations.
After the slide stocks finished with their worst day in 7 sessions and the NASDAQ snapped a 6-day winning streak.
Here’s where the major indices ended the day:
- The S&P finished with a 2.1% loss. Down 60 points, the S&P ended at 2,870.
- The DOW ended 1.9% lower. Dropping 457 points the DOW closed at 23,765.
- The NASDAQ was down 2.1%. With a 190 point loss the NASDAQ finished at 9,003.
Crude Oil (CL) finished higher today. Up 4.9%, Crude Oil ended at $26.30 a barrel.
Bank stocks were hit today after President Trump tweeted about negative interest rates. Bank of America (BAC), Citigroup (C), and JP Morgan Chase (JPM) were all down more than 3.0%.
Uber (UBER) and GrubHub (GRUB) avoided the sell off after news that Uber has made an offer to acquire GrubHub. Uber was up 2.4% and Grub Hub gained 29.1% on the news.
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.