Stock Market Update Friday, June 19th, 2020
Today stocks went on a roller coaster ride.
The S&P was up as much as 1.3% shortly after the bell.
But stocks quickly pulled away from session highs. And a drop in the afternoon saw the S&P down 1.0%, completely erasing the early gain.
Why the mid-day drop?
Apple (AAPL) announced it would temporarily close 11 stores in California, Arizona and Florida because of COVID-19 concerns.
Apple’s retail chief Dierdre O’brian stated in a letter to customers- “Apple will only reopen stores when it’s confident it can safely serve customers”.
Apple’s store closing made investors nervous because until now they hoped that a possible second wave would not impact the economy.
But many see Apple as the “canary in a coal mine”, and investors fear that other businesses might follow suit and close their stores as well.
Not long after that …
Boston Fed President Eric Rosengren had some more bad news. He stated that the second half of the economic rebound would drag on longer than expected.
This news was enough to send stocks to session lows.
The S&P and DOW finished the day with a loss. But the NASDAQ was able to squeeze out a small gain.
Here’s where the major markets ended the day:
|*As of market close|
Gilead (GILD) jumped 4.6% today. On Wednesday, the pharmaceutical company announced its plan to use Remdesivir in clinical trials with children. Scientists say that increasing reports of Covid-19 infection in children are concerning. This drug has shown positive results in adults.
Cruise lines were hit today after the Cruise Lines International Association said cruises from U.S. ports will be suspended until September because of COVID-19 concerns.
Royal Caribbean Cruise Lines (RCL) suffered at 6.9% loss, Carnival (CCL) lost 5.3% and Norwegian (NCL) finished lower by 5.6%.
United Airlines (UAL) stock hit some turbulence today and suffered a 6.3% loss. United was one of the biggest losers in the S&P today. The airline is hoping to raise $5 billion through a debt offering that could begin on Monday. But last month a similar offering was scraped after in interest the airline’s junk bonds wasn’t strong enough for the terms the airline wanted.
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.