Stock Market Update Thursday, May 14th, 2020
Things looked ugly this morning.
Index futures were sliding after Weekly Jobless Claims showed that another 2.9 million Americans filed for unemployment last week, worse than the 2.7 million claims that were expected.
This brings the unemployment claims total to 36.5 million.
After the opening bell stocks continued to drop. But around 10am ET stocks turned on a dime.
Sometimes bad news is good news. And this was likely the rally cry this morning.
The fourth coronavirus stimulus bill was proposed by Democrats earlier this week, which includes another round of stimulus checks. Although the bill in its current form is unlikely to pass in the Senate, the continued bad jobs data is one reason for lawmakers to push the bill through and come to a bipartisan agreement on another round of stimulus.
After the turnaround, stocks rallied pretty much all day long and the DOW snapped a 3-day losing streak.
Here’s where the major indices ended the day:
- The S&P finished with a 1.2% gain. Up 33 points, the S&P ended at 2,853.
- The DOW ended 1.6% higher. Adding 377 points the DOW closed at 23,625.
- The NASDAQ was up 0.9%. With an 81 point gain the NASDAQ finished at 8,863.
Crude Oil (CL) rallied and finished above $27 for the first time in almost a month. Up 7.7%, Crude Oil ended at $27.65 a barrel.
Bank stocks finally caught a break.
Bank of America (BAC) finished higher by 4.0%, Citigroup (C) added 3.6%, and JP Morgan Chase (JPM) rallied 4.2%.
Wells Fargo (WFC) even jumped 6.8%. But Wells Fargo leading bank stocks today had a lot to do with rumors that the bank “might” merge with Goldman Sachs (GS). Goldman finished higher by 1.2%.
In earnings news, Cisco (CSCO) extended yesterday’s after hours gains and finished higher by 4.5%. The rally came after the company reported better than expected revised earnings and guidance.
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.