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Wall Street closed sharply higher on Monday following positive development regarding Congressional negotiations for the approval of a fresh coronavirus-aid package. Moreover, a flurry of merger and acquisition activities also bolstered investors' confidence on risky assets like equities. All the three major stock indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 1.5% or 410.10 points to close at 27,584.06, maintaining 3-day winning streak. Notably, 27 components of the 30-stock index ended in the green while 3 finished in red. The blue-chip index is 3.3% below to become green year to date.
Moreover, the tech-laden Nasdaq Composite finished at 11,117.53, appreciating 1.9% or 203.96 points due to the strong showing by technology behemoths, continuing 3-day winning run.
Meanwhile, the S&P 500 advanced 1.6% to end at 3,351.60, marking third successive day of gains. The Financials Select Sector SPDR (XLF), the Energy Select Sector SPDR (XLE) and the Consumer Discretionary Select Sector SPDR (XLY) climbed 2.4%, 2.4% and 2.1%, respectively. Notably, all eleven sectors of the benchmark index closed in positive zone.
The fear-gauge CBOE Volatility Index (VIX) was down 0.7% to 26.19. A total of 8.74 billion shares were traded on Monday, lower than the last 20-session average of 10.05 billion. Advancers outnumbered decliners on the NYSE by a 5.27-to-1 ratio. On Nasdaq, a 3.25-to-1 ratio favored advancing issues.
Positive Development on Fresh Fiscal Stimulus
On Sep 28, U.S. House of Representatives Speaker Nancy Pelosi unveiled a new $2.2 trillion new coronavirus-aid package on behalf of Democrats. On Sep 27, Pelosi has expressed her hope that deal can be reached with the White House on a new coronavirus relief package and that talks were continuing.
Notably, Pelosi and U.S. Treasury Secretary Steven Mnuchin had telephonic discussion on Sep 27 and 28. Both of them will again discuss on Sep 29. In fact, Nancy Pelosi, Senate Democratic leader Chuck Schumer, Steven Mnuchin and White House Chief of Staff Mark Meadows are trying hard to reach an amicable solutions regarding the size of the aid package.
Meanwhile, the Democrats have reduced the deal size to $2.2 trillion from $3.4 trillion demanded earlier while the Republicans have raised the deal size to $1.5 trillion from $1 trillion offered earlier. The U.S. Congress is yet to reach a solution agreeable to both parties.
Reopening of the negotiation process related to a fresh round of pandemic-relief package resulted in a broad-based rally in Wall Street. In fact, the energy, financials and consumer discretionary gained more than the technology sector. The industrials, real estate and materials sectors also jumped on Sep 28.
Flurry in M&A Activities
Devon Energy Corp. (DVN - Free Report) and WPX Energy Inc. have decide to merge in an all-stock deal to create an oil company with an enterprise value of around $12 billion. Moreover, the mining giant Cleveland-Cliffs Inc. (CLF - Free Report) has decided to acquire the U.S. operations of ArcelorMittal (MT - Free Report) for $1.4 billion. Meanwhile, Ivanti Inc. has decided to takeover MobileIron Inc. , mobile security platform serving the work-from-home market, in an all-cash deal for a consideration of $872 million.
Furthermore, casino operator Caesars Entertainment Inc. (CZR - Free Report) has decided to buy London-based sports betting site, William Hill, for around $3.7 billion in cash. Additionally, the Chinese social-media giant Sina Corp. that it will become a private firm in a $2.59 billion deal.
Equinor ASA (EQNR - Free Report) recently announced that it has decided to develop the Breidablikk oil discovery, located in the North Sea. (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 +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Stock Market News for Sep 29, 2020
Wall Street closed sharply higher on Monday following positive development regarding Congressional negotiations for the approval of a fresh coronavirus-aid package. Moreover, a flurry of merger and acquisition activities also bolstered investors' confidence on risky assets like equities. All the three major stock indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 1.5% or 410.10 points to close at 27,584.06, maintaining 3-day winning streak. Notably, 27 components of the 30-stock index ended in the green while 3 finished in red. The blue-chip index is 3.3% below to become green year to date.
Moreover, the tech-laden Nasdaq Composite finished at 11,117.53, appreciating 1.9% or 203.96 points due to the strong showing by technology behemoths, continuing 3-day winning run.
Meanwhile, the S&P 500 advanced 1.6% to end at 3,351.60, marking third successive day of gains. The Financials Select Sector SPDR (XLF), the Energy Select Sector SPDR (XLE) and the Consumer Discretionary Select Sector SPDR (XLY) climbed 2.4%, 2.4% and 2.1%, respectively. Notably, all eleven sectors of the benchmark index closed in positive zone.
The fear-gauge CBOE Volatility Index (VIX) was down 0.7% to 26.19. A total of 8.74 billion shares were traded on Monday, lower than the last 20-session average of 10.05 billion. Advancers outnumbered decliners on the NYSE by a 5.27-to-1 ratio. On Nasdaq, a 3.25-to-1 ratio favored advancing issues.
Positive Development on Fresh Fiscal Stimulus
On Sep 28, U.S. House of Representatives Speaker Nancy Pelosi unveiled a new $2.2 trillion new coronavirus-aid package on behalf of Democrats. On Sep 27, Pelosi has expressed her hope that deal can be reached with the White House on a new coronavirus relief package and that talks were continuing.
Notably, Pelosi and U.S. Treasury Secretary Steven Mnuchin had telephonic discussion on Sep 27 and 28. Both of them will again discuss on Sep 29. In fact, Nancy Pelosi, Senate Democratic leader Chuck Schumer, Steven Mnuchin and White House Chief of Staff Mark Meadows are trying hard to reach an amicable solutions regarding the size of the aid package.
Meanwhile, the Democrats have reduced the deal size to $2.2 trillion from $3.4 trillion demanded earlier while the Republicans have raised the deal size to $1.5 trillion from $1 trillion offered earlier. The U.S. Congress is yet to reach a solution agreeable to both parties.
Reopening of the negotiation process related to a fresh round of pandemic-relief package resulted in a broad-based rally in Wall Street. In fact, the energy, financials and consumer discretionary gained more than the technology sector. The industrials, real estate and materials sectors also jumped on Sep 28.
Flurry in M&A Activities
Devon Energy Corp. (DVN - Free Report) and WPX Energy Inc. have decide to merge in an all-stock deal to create an oil company with an enterprise value of around $12 billion. Moreover, the mining giant Cleveland-Cliffs Inc. (CLF - Free Report) has decided to acquire the U.S. operations of ArcelorMittal (MT - Free Report) for $1.4 billion. Meanwhile, Ivanti Inc. has decided to takeover MobileIron Inc. , mobile security platform serving the work-from-home market, in an all-cash deal for a consideration of $872 million.
Furthermore, casino operator Caesars Entertainment Inc. (CZR - Free Report) has decided to buy London-based sports betting site, William Hill, for around $3.7 billion in cash. Additionally, the Chinese social-media giant Sina Corp. that it will become a private firm in a $2.59 billion deal.
Cleveland-Cliffs carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks That Have Made Headline
Equinor Submits Breidablikk Development Plan in North Sea
Equinor ASA (EQNR - Free Report) recently announced that it has decided to develop the Breidablikk oil discovery, located in the North Sea. (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 +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>