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.
Benchmarks closed higher on Monday after the Federal Reserve announced that it will purchase corporate bonds. The news boosted investor’s sentiment that was weighed down by a spike in new coronavirus cases as states continue to reopen.
The Dow Jones Industrial Average (DJI) rose 157.62 points higher, or 0.6%, to close at 25,763.16 and the S&P 500 added 25.28 points, or 0.8% to close at of 3,066.59. While, the Nasdaq Composite Index closed at 9,726.02, adding 137.21 points, or 1.4%. The fear-gauge CBOE Volatility Index (VIX) decreased 4.7%, to close at 34.40. Advancing issues outnumbered declining ones for 1.97-to-1 ratio on the NYSE and a 2.69-to-1 ratio on the Nasdaq favored advancers.
How Did the Benchmarks Perform?
All the major sectors of the S&P 500 ended in the green, gains were lead by financials and consumer staples sectors. The financial sector jumped 1.4% and the S&P 500 Banking index added 1.6%.
Gain in health-care stocks boosted the Nasdaq as fears of coronavirus infections resurged. Rally in shares of Zoom Video Communications Inc. (ZM - Free Report) also boosted the index. Shares of Zoom Video hit record high on Monday adding 8.9% on renewed pandemic fears amid a resurgence of COVID-19 cases in China and the United States.
While the S&P index recorded no new 52-week highs or lows, the Nasdaq recorded 46 new highs and 10 new lows.
Fed to Buy Corporate Bonds
On Monday, the Federal Reserve announced steps to keep credit flowing to big businesses as the economy starts to reopen after nearly three months. Indexes plunged on Jun 11 as signs of a resurgence of the COVID-19 clouded investors’ sentiment.
The Fed said that it would expand the scope of its $750-billion emergency corporate debt loan facility by buying a broad and diversified portfolio of debt issued by individual corporates. In that way, more money will flow into the hands of big businesses at a time when the financial system is going through high stress following the sharp decline in economic activities from the pandemic. The iShares iBoxx Investment Grade corporate bond ETF rose 1% after the Fed announcement.
Meanwhile, confirmed coronavirus cases in the United States stands around 2.1 million, with nearly 116,000 deaths, per the Johns Hopkins University data. In the United States, a record number of new coronavirus cases have been reported in Alaska, Arizona, Arkansas, California, Florida, North Carolina, Oklahoma and South Carolina in the past three days.
Antero Resources Corporation (AR - Free Report) recently closed an overriding royalty interest (ORRI) transaction with Sixth Street Partners, a private investment firm. (Read More)
Recently, the all-stock merger of equals between Tennessee-based First Horizon National Corporation (FHN - Free Report) and Lafayette, LA-based IBERIABANK Corporation received regulatory nod from the Board of Governors of the Federal Reserve System. (Read More)
BP plc (BP - Free Report) has estimated a write-off of up to $17.5 billion from its assets value following the downward revision of its long-term oil and gas prices. (Read More)
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Stock Market News for Jun 16, 2020
Benchmarks closed higher on Monday after the Federal Reserve announced that it will purchase corporate bonds. The news boosted investor’s sentiment that was weighed down by a spike in new coronavirus cases as states continue to reopen.
The Dow Jones Industrial Average (DJI) rose 157.62 points higher, or 0.6%, to close at 25,763.16 and the S&P 500 added 25.28 points, or 0.8% to close at of 3,066.59. While, the Nasdaq Composite Index closed at 9,726.02, adding 137.21 points, or 1.4%. The fear-gauge CBOE Volatility Index (VIX) decreased 4.7%, to close at 34.40. Advancing issues outnumbered declining ones for 1.97-to-1 ratio on the NYSE and a 2.69-to-1 ratio on the Nasdaq favored advancers.
How Did the Benchmarks Perform?
All the major sectors of the S&P 500 ended in the green, gains were lead by financials and consumer staples sectors. The financial sector jumped 1.4% and the S&P 500 Banking index added 1.6%.
Gain in health-care stocks boosted the Nasdaq as fears of coronavirus infections resurged. Rally in shares of Zoom Video Communications Inc. (ZM - Free Report) also boosted the index. Shares of Zoom Video hit record high on Monday adding 8.9% on renewed pandemic fears amid a resurgence of COVID-19 cases in China and the United States.
Zoom Video flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
While the S&P index recorded no new 52-week highs or lows, the Nasdaq recorded 46 new highs and 10 new lows.
Fed to Buy Corporate Bonds
On Monday, the Federal Reserve announced steps to keep credit flowing to big businesses as the economy starts to reopen after nearly three months. Indexes plunged on Jun 11 as signs of a resurgence of the COVID-19 clouded investors’ sentiment.
The Fed said that it would expand the scope of its $750-billion emergency corporate debt loan facility by buying a broad and diversified portfolio of debt issued by individual corporates. In that way, more money will flow into the hands of big businesses at a time when the financial system is going through high stress following the sharp decline in economic activities from the pandemic. The iShares iBoxx Investment Grade corporate bond ETF rose 1% after the Fed announcement.
Meanwhile, confirmed coronavirus cases in the United States stands around 2.1 million, with nearly 116,000 deaths, per the Johns Hopkins University data. In the United States, a record number of new coronavirus cases have been reported in Alaska, Arizona, Arkansas, California, Florida, North Carolina, Oklahoma and South Carolina in the past three days.
Stocks that Made Headline
Antero Resources Closes ORRI Deal, Stock Up Nearly 15%
Antero Resources Corporation (AR - Free Report) recently closed an overriding royalty interest (ORRI) transaction with Sixth Street Partners, a private investment firm. (Read More)
First Horizon & IBERIABANK Merger Gets Regulatory Nod
Recently, the all-stock merger of equals between Tennessee-based First Horizon National Corporation (FHN - Free Report) and Lafayette, LA-based IBERIABANK Corporation received regulatory nod from the Board of Governors of the Federal Reserve System. (Read More)
Here's Why BP Decides to Write Off Up to $17.5B From Assets
BP plc (BP - Free Report) has estimated a write-off of up to $17.5 billion from its assets value following the downward revision of its long-term oil and gas prices. (Read More)
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>