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The Dow Jones Industrial Average is sinking further after the Trump administration announced plans to inject roughly $1 trillion into the U.S. economy to help consumers.
The Dow is now off 28% from its record high. Should another 7% drop in the S&P 500 come this morning, it would trigger the first level of three circuit breakers.
Before we get into this story and more, here are the numbers from Tuesday for the Dow, S&P 500, and Nasdaq:
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Now, here's a closer look at today's most important market events and stocks. We'll also discuss the stories that slipped under the radar of the mainstream financial press on Wednesday.
The Top Stock Market Stories for Wednesday
- The big news this morning is that Boeing Co. (NYSE: BA) is looking for $60 billion in liquidity for the aerospace sector. The firm told regulators that it does not have enough capital on hand to meet its current obligations with an economic downturn on hand. While Washington debates a bailout, expect to hear a lot of criticism about Boeing's stock buyback programs over the last decade. The White House is considering a number of stimulus packages that would include roughly $550 billion in direct payments to Americans, or tax cuts.
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- The coronavirus has now spread to 50 states. Roughly 6,500 Americans have contracted the disease, with 114 deaths, according to Johns Hopkins University. The global number of cases now totals 200,000, with just under 8,000 deaths.
- Finally, it's hard to remember sometimes that we are still in election season. On Tuesday, former U.S. Vice President Joe Biden built a nearly insurmountable lead over Sen. Bernie Sanders (I-VT) with wins in the Illinois, Arizona, and Florida primary elections. Some pundits are calling on Sanders to suspend his campaign.
Stocks to Watch Today: FDX, F, FCAU, GM, TSLA
- Shares of FedEx Corp. (NYSE: FDX) were off more than 4.2% this morning after the global shipping giant reported earnings before the bell.
- Shares of Ford Motor Co. (NYSE: F), Fiat Chrysler Automobiles NV (NYSE: FCAU), and General Motors Co. (NYSE: GM) were all falling on news that they will partially shut down their production in key facilities around the country. They aren't the only firm facing pressure. Tesla Inc. (NASDAQ: TSLA) will also suspend operations in its Fremont, Calif., plant after its factory was not deemed an "essential business" during a "shelter in place" order.
- Shares of Walmart Inc. (NYSE: WMT) received an upgrade from Credit Suisse on the argument that the company will gain market share due to a massive structural change in buying habits by consumers. The investment bank is trying to time the market; however, it's clear that they are way too early. Momentum in this market is purely negative, and the best position for the moment is cash or things that you want to own at least 12 to 18 months from now.
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.