We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
U.S. stock markets ended mixed on Tuesday as investors waited for Fed's latest FOMC policy decision. Moreover, the NBER's statement that the economy has fallen in recession since mid-February also dented investors' confidence. Meanwhile, the Nasdaq Composite touched a significant milestone and closed in the green while both the Dow and the S&P 500 finished in red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) tumbled 1.1% or 300.14 points to close at 27,272.30, snapping its sixth straight positive close. Notably, 26 components of the 30-stock blue-chip index ended in the red while 4 finished in green.
The S&P 500 declined 0.8% to close at 3,207.18. The Energy Select Sector SPDR (XLE), the Industrials Select Sector SPDR (XLI) and the Financials Select Sector SPDR (XLF) plummeted 3.8%, 2.5% and 2.1%, respectively. Notably, 10 out of eleven sectors of the benchmark index closed in negative territory and only one in positive territory.
However, the tech-heavy Nasdaq Composite closed at 9,953.75, gaining 0.3% due to strong performance of large-cap tech stocks. During the intraday trading session, Nasdaq Composite briefly touched the 10,000 level at 10,002.5 for the first time in history. Additionally, the tech-laden index has posted a fresh all-time high closing on Tuesday.
The fear-gauge CBOE Volatility Index (VIX) increased 6.8% to close at 27.57. A total of 13.82 billion shares were traded on Tuesday, higher than the last 20-session average of 12.54 billion. Decliners outnumbered advancers on the NYSE by a 3.09-to-1 ratio. On Nasdaq, a 1.84-to-1 ratio favored declining issues.
Fed's FOMC Meeting
The 2-day FOMC meeting of the Fed has started from Tuesday. The central bank has done exceptionally well with respect to maintain credit flow during the period of lockdowns. Market participants expect the Fed to continue its unlimited asset purchase program and to keep the benchmark interest rate at 0% to 0.25%. The Fed chairman Jerome Powell will give a statement after the meeting. Market participants will closely monitor any clue about the Fed's future intentions and about its view of the economy.
U.S. Economy in Recession
On Jun 8, the National Bureau of Economic Research (NBER) stated that the U.S. economy is indeed in recession since mid-February, ending the historically longest 128 months of expansions. According to the NBER's Business Cycle Dating Committee “The unprecedented magnitude of the decline in employment and production, and its broad reach across the entire economy, warrants the designation of this episode as a recession, even if it turns out to be briefer than earlier contractions.”
Moreover, the world Bank has estimated that the global economy will shrink around 5.2% in 2020 due to the coronavirus-induced mayhem. The International Monetary Fund has said that the ongoing global recession may be worse than the Great Depression.
Economic Data
National Federation of Independent Business (NFIB) reported that the U.S. Small Business Optimism Index got a strong momentum in May increasing 94.4 from 90.9 in April. Eight of the 10 components of the index improved in the last month while two declined. per the report, majority of owners are optimistic about future business conditions and expect the recession to be short-lived.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
Stock Market News for Jun 10, 2020
U.S. stock markets ended mixed on Tuesday as investors waited for Fed's latest FOMC policy decision. Moreover, the NBER's statement that the economy has fallen in recession since mid-February also dented investors' confidence. Meanwhile, the Nasdaq Composite touched a significant milestone and closed in the green while both the Dow and the S&P 500 finished in red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) tumbled 1.1% or 300.14 points to close at 27,272.30, snapping its sixth straight positive close. Notably, 26 components of the 30-stock blue-chip index ended in the red while 4 finished in green.
The S&P 500 declined 0.8% to close at 3,207.18. The Energy Select Sector SPDR (XLE), the Industrials Select Sector SPDR (XLI) and the Financials Select Sector SPDR (XLF) plummeted 3.8%, 2.5% and 2.1%, respectively. Notably, 10 out of eleven sectors of the benchmark index closed in negative territory and only one in positive territory.
However, the tech-heavy Nasdaq Composite closed at 9,953.75, gaining 0.3% due to strong performance of large-cap tech stocks. During the intraday trading session, Nasdaq Composite briefly touched the 10,000 level at 10,002.5 for the first time in history. Additionally, the tech-laden index has posted a fresh all-time high closing on Tuesday.
Large-cap tech stocks like Apple Inc. (AAPL - Free Report) , Netflix Inc. (NFLX - Free Report) , Facebook Inc. and Amazon.com Inc. (AMZN - Free Report) rallied more than 3%. Apple and Netflix carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The fear-gauge CBOE Volatility Index (VIX) increased 6.8% to close at 27.57. A total of 13.82 billion shares were traded on Tuesday, higher than the last 20-session average of 12.54 billion. Decliners outnumbered advancers on the NYSE by a 3.09-to-1 ratio. On Nasdaq, a 1.84-to-1 ratio favored declining issues.
Fed's FOMC Meeting
The 2-day FOMC meeting of the Fed has started from Tuesday. The central bank has done exceptionally well with respect to maintain credit flow during the period of lockdowns. Market participants expect the Fed to continue its unlimited asset purchase program and to keep the benchmark interest rate at 0% to 0.25%. The Fed chairman Jerome Powell will give a statement after the meeting. Market participants will closely monitor any clue about the Fed's future intentions and about its view of the economy.
U.S. Economy in Recession
On Jun 8, the National Bureau of Economic Research (NBER) stated that the U.S. economy is indeed in recession since mid-February, ending the historically longest 128 months of expansions. According to the NBER's Business Cycle Dating Committee “The unprecedented magnitude of the decline in employment and production, and its broad reach across the entire economy, warrants the designation of this episode as a recession, even if it turns out to be briefer than earlier contractions.”
Moreover, the world Bank has estimated that the global economy will shrink around 5.2% in 2020 due to the coronavirus-induced mayhem. The International Monetary Fund has said that the ongoing global recession may be worse than the Great Depression.
Economic Data
National Federation of Independent Business (NFIB) reported that the U.S. Small Business Optimism Index got a strong momentum in May increasing 94.4 from 90.9 in April. Eight of the 10 components of the index improved in the last month while two declined. per the report, majority of owners are optimistic about future business conditions and expect the recession to be short-lived.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>