Stock Market Update Monday, June 15th, 2020
Whoa, what a comeback today!!!
Things looked ugly overnight, with futures down as much as 3.0%.
And shortly before the open, it looked like markets were ready to sell off again today.
The reason: Traders were concerned about new lockdowns after U.S., China, and parts of Europe reported a jump in coronavirus cases.
The major indices opened 2% lower and began the day in serious red territory.
But shortly after the open, the markets rallied and never looked back.
At 2:00 p.m. ET, stocks saw another boost after the Fed announced it will start buying individual corporate bonds. The move was unexpected, but it reminded traders that the Fed can, and will, do everything to support the markets at any time during this recovery.
So after a start a horrible start, stocks pulled off a pretty impressive u-turn and ended the day with gains across the board.
Here’s where the major markets ended the day:
|*As of market close|
Today “Covid Stocks” and tech stocks were the biggest winners.
Zoom Video Communications (ZM) hit a new all time high, closing at 239.59 with an 8.9% gain. Based on the new coronavirus infections and today’s rally, it looks like traders are betting on more video conferences and virtual meetings.
American Express (AXP) lands a green light from “The People’s Bank Of China” to start a joint venture. This opportunity opens up China for business. American Express stock closed 2.2% higher on the news.
What the heck is up with Hertz (HTZ)?
The rental car company wants to sell up to $500 million shares to raise money, but warns that it’s almost certain that the stock will become worthless…not the vote of confidence “real traders” (aka not Robinhood traders) were looking for. Hertz finished 33.6% lower.
The question is…is Hertz making this statement for compliance reasons? Or are they totally desperate at this point and doing everything possible to raise funds. Either way, Hertz is a big gamble at this point!
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.