Stocks shrugged off everything and closed higher (again)!
There was more sobering coronavirus news to digest after the Congressional Budget Office said the coronavirus will likely wipe out $7.9 trillion from the economy over the next 10 years.
And then there’s civil unrest blanketing America…
Some of the biggest cities in the U.S. are on lockdown because of protests and looting.
And last night President Trump said “I am mobilizing all federal and local resources, civilian and military, to protect the rights of law-abiding Americans.” He added, “if a city or state refuses to take actions necessary to defend the life and property of their residents, then I will deploy the United States military and quickly solve the problem for them.”
What might be viewed as “fighting words” for some states was viewed as a “MEH” by traders. Especially since the major indices opened higher this morning.
Trading after the open was choppy and stocks pulled back and were in negative territory by late morning.
But a lunchtime rally and rally into the close helped the major indices finish at session highs.
With today’s close the S&P is now up more than 40% from its March low. And the NASDAQ is now just 2.7% away from its record high set on February 19th.
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 3,056.
The DOW ended higher by 0.4%. Adding 92 points the DOW closed at 25,475.
The NASDAQ was up 0.7%. With a 62 point gain the NASDAQ finished at 9,552.
Crude Oil (CL) dropped finished at a 3-month high today. Up 3.8%, Crude Oil finished at $36.80 a barrel.
Marriott (MAR) put the impact coronavirus has had on the hotel industry into perspective. The company said that the COVID-19 impact is worse “than 9/11 and the 2008 financial crisis combined.” Marriott finished the day with a 0.6% gain.
Traders seem pretty optimistic about the economy. But is Wells Fargo (WFC) betting on a strong economy in the near future? Not so much. At least not if you consider loans.
The bank, one of the biggest lenders for new and used car purchases, stopped making loans to most independent car dealerships because the bank is worried about defaults. And the bank has also stopped offering personal lines of credit. Wells Fargo (WFC) ended the day with a 1.1% gain.