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Coronavirus Ends Bull Run, Trump's Plan & Buy this Chip Stock - Free Lunch

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On today’s episode of Free Lunch here at Zacks, Associate Stock Strategist Ben Rains dives into the end of the 11-year bull run as the coronavirus and fears surrounding it continue to expand. We also take a look at President Trump’s plan to fight the economic downturn and the spread. We then end with a look at why Intel INTC is a Zacks Rank #1 (Strong Buy) stock right now.

The Dow Jones Industrial Average ended its 11-year bull run Wednesday after the World Health Organization declared the coronavirus a pandemic. The selling continued on Thursday, with the S&P 500 down 7% right after the opening bell, which triggered a 15-minute halt in trading for the second time this week.

All three major U.S. indexes tumbled over 8% through morning trading, with the Dow down over 9%. This decline came after President Trump addressed the nation live on TV Wednesday night and announced a 30-day ban on some travel from Europe into the U.S. The travel restrictions exclude the U.K., as well as U.S. citizens and green-card holders.

Trump also announced that the U.S. government it taking emergency action “to ensure that working Americans impacted by the virus can stay home without fear of financial hardship.” Other economic-focused actions are also being taken.

Dow Inc. DOW, American Express AXP, IBM IBM, Disney DIS and all other DJIA components were down as well.

On top of that, United Airlines (UAL - Free Report) , American (AAL - Free Report) , and other travel stocks fell. Looking ahead, Adobe ADBE, Oracle ORCL, and Broadcom AVGO all report after the closing bell Thursday.

The episode then closes with why Intel is a Zacks Rank #1 (Strong Buy) stock, as part of a strong Semiconductor industry that includes Nvidia NVDA and others.

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