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Wall Street rallied on Friday buoyed by President Donald Trump's decision to set another round of coronavirus-relief package into law and recovery of crude oil prices to some extent. Meanwhile, the first-quarter 2020 earnings results remained disappointing so far. However, all three major stock indexes closed in the green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 1.1% or 260.01 points to close at 23,775.27. Notably, 27 components of the 30-stock blue-chip index ended in green while 3 finished in the red. The tech-heavy Nasdaq Composite closed at 8,634.52, surging 1.7%supported by the strong performance of large-cap tech stocks. Meanwhile, the S&P 500 gained 1.4% to close at 2,836.74.The Technology Select Sector SPDR (XLK) and Materials Select Sector SPDR (XLB) rallied 2.1% and 1.6%, respectively. Notably, all eleven sectors of the benchmark index closed in the green.
The fear-gauge CBOE Volatility Index (VIX) decreased 13.2% to close at 35.93. A total of 10.2 billion shares were traded on Friday, lower than the last 20-session average of 12.5 billion.Advancers outnumbered decliners on the NYSE by a 1.65-to-1 ratio. On Nasdaq, a 2.00-to-1 ratio favored advancing issues.
Trump Signs Next Round of Coronavirus Stimulus Program
On Apr 24, President Donald Trump signed into law a $484 billion measure as coronavirus relief package. The new aid package will contain another $320 billion to help small businesses. The first relief package had $349 billion for small entrepreneurs. The new package will also provide $75 billion for hospitals, $25 billion for coronavirus testing and $60 billion for the Small Business Administration’s Economic Injury Disaster Loan program.
Crude Oil Recovers Some Lost Ground
On Apr 24, the U.S. benchmark -- the West Texas Intermediate (WTI) -- crude oil price for June delivery rose $0.44 or 2.7% to settle at $16.94 a barrel in Nymex. The WTI witnessed a three straight-day of winning streak, for the first time since Mar 25. However, for the week as a whole, the WTI crude oil price plunged 32.3%. Consequently, shares of Exxon Mobil Corp. (XOM - Free Report) was up 0.6%. Exxon Mobil has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Likewise, the global benchmark -- the Brent -- crude oil price for June delivery rose $0.11 or 0.5% to settle at $21.44 a barrel on ICE Futures Europe,. However, for the week as a whole, the Brent crude oil price plummeted 23.7%.
Disappointing First-Quarter Earnings Results
As of Apr 24, 122 S&P 500 members reported first-quarter 2020 earnings results. Total earnings of these companies are down 16.2% from the same period last year on 2.5% higher revenues. Of the total, 64.8% surpassed EPS estimates and 63.1% outpaced revenue estimates. Overall, first-quarter earnings for the S&P 500 Index were projected to be down 15.3% year over year on 1.2% higher revenues. This is in sharp contrast to 4% earnings growth expected in early January. (Read More: Previewing Tech Sector Earnings)
Economic Data
The Department of Commerce reported that U.S. durable goods orders for the month of March plunged 14.4%, surpassing the consensus estimate of a decline of 11.6%. Notably, February's data was revised downward from a gain of 1.2% to 1.1%. However, new orders for core (non-defense capital goods excluding aircraft) capital goods, a closely watched proxy for business spending plans, edged up 0.1% In March. Notably, February's data was revised upward from a decline of 0.9% to a decline of 0.8%.
The University of Michigan reported that the U.S. consumer sentiment index tumbled to 71.8 in April from 89.1 in March. However, the reading was better-than the consensus estimate of 67.1.
Weekly Roundup
Last week was a disappointing one for Wall Street after rallying for two-consecutive weeks. The three major stock indexes -- the Dow, the S&P 500 and the Nasdaq Composite -- declined 1.9%, 1.3% and 0.2%. Wall Street's decline was primarily due to the turmoil of crude oil prices.
On Apr 20, the price of WTI crude for May delivery lost all its value finishing at negative $37.63 per barrel. This simply means that to sell one barrel of crude oil, producers would have to pay $37.63 to the buyer in addition to the physical commodity (crude oil). This unprecedented situation occurred owing to sheer lack of demand.
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 Apr 27, 2020
Wall Street rallied on Friday buoyed by President Donald Trump's decision to set another round of coronavirus-relief package into law and recovery of crude oil prices to some extent. Meanwhile, the first-quarter 2020 earnings results remained disappointing so far. However, all three major stock indexes closed in the green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 1.1% or 260.01 points to close at 23,775.27. Notably, 27 components of the 30-stock blue-chip index ended in green while 3 finished in the red. The tech-heavy Nasdaq Composite closed at 8,634.52, surging 1.7%supported by the strong performance of large-cap tech stocks. Meanwhile, the S&P 500 gained 1.4% to close at 2,836.74.The Technology Select Sector SPDR (XLK) and Materials Select Sector SPDR (XLB) rallied 2.1% and 1.6%, respectively. Notably, all eleven sectors of the benchmark index closed in the green.
The fear-gauge CBOE Volatility Index (VIX) decreased 13.2% to close at 35.93. A total of 10.2 billion shares were traded on Friday, lower than the last 20-session average of 12.5 billion.Advancers outnumbered decliners on the NYSE by a 1.65-to-1 ratio. On Nasdaq, a 2.00-to-1 ratio favored advancing issues.
Trump Signs Next Round of Coronavirus Stimulus Program
On Apr 24, President Donald Trump signed into law a $484 billion measure as coronavirus relief package. The new aid package will contain another $320 billion to help small businesses. The first relief package had $349 billion for small entrepreneurs. The new package will also provide $75 billion for hospitals, $25 billion for coronavirus testing and $60 billion for the Small Business Administration’s Economic Injury Disaster Loan program.
Crude Oil Recovers Some Lost Ground
On Apr 24, the U.S. benchmark -- the West Texas Intermediate (WTI) -- crude oil price for June delivery rose $0.44 or 2.7% to settle at $16.94 a barrel in Nymex. The WTI witnessed a three straight-day of winning streak, for the first time since Mar 25. However, for the week as a whole, the WTI crude oil price plunged 32.3%. Consequently, shares of Exxon Mobil Corp. (XOM - Free Report) was up 0.6%. Exxon Mobil has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Likewise, the global benchmark -- the Brent -- crude oil price for June delivery rose $0.11 or 0.5% to settle at $21.44 a barrel on ICE Futures Europe,. However, for the week as a whole, the Brent crude oil price plummeted 23.7%.
Disappointing First-Quarter Earnings Results
As of Apr 24, 122 S&P 500 members reported first-quarter 2020 earnings results. Total earnings of these companies are down 16.2% from the same period last year on 2.5% higher revenues. Of the total, 64.8% surpassed EPS estimates and 63.1% outpaced revenue estimates. Overall, first-quarter earnings for the S&P 500 Index were projected to be down 15.3% year over year on 1.2% higher revenues. This is in sharp contrast to 4% earnings growth expected in early January. (Read More: Previewing Tech Sector Earnings)
Economic Data
The Department of Commerce reported that U.S. durable goods orders for the month of March plunged 14.4%, surpassing the consensus estimate of a decline of 11.6%. Notably, February's data was revised downward from a gain of 1.2% to 1.1%. However, new orders for core (non-defense capital goods excluding aircraft) capital goods, a closely watched proxy for business spending plans, edged up 0.1% In March. Notably, February's data was revised upward from a decline of 0.9% to a decline of 0.8%.
The University of Michigan reported that the U.S. consumer sentiment index tumbled to 71.8 in April from 89.1 in March. However, the reading was better-than the consensus estimate of 67.1.
Weekly Roundup
Last week was a disappointing one for Wall Street after rallying for two-consecutive weeks. The three major stock indexes -- the Dow, the S&P 500 and the Nasdaq Composite -- declined 1.9%, 1.3% and 0.2%. Wall Street's decline was primarily due to the turmoil of crude oil prices.
On Apr 20, the price of WTI crude for May delivery lost all its value finishing at negative $37.63 per barrel. This simply means that to sell one barrel of crude oil, producers would have to pay $37.63 to the buyer in addition to the physical commodity (crude oil). This unprecedented situation occurred owing to sheer lack of demand.
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 >>