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The Dow Jones Industrial Average is getting a boost this morning with lawmakers ready to pass a relief measure in response to COVID-19.
Yesterday, the Senate failed for the second time to reach a deal. That pushed the Dow to multiyear lows. Details on the new bill, below.
Here are the numbers from Monday for the Dow, S&P 500, and Nasdaq:
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Now, here are the most important market events and stories that I'm following right now.
The Top Stock Market Stories for Tuesday
- Global coronavirus cases surpassed 382,000, according to Johns Hopkins University. The ongoing surge in cases has fueled an "unprecedented" collapse in economic activity in Europe during March. The contraction in economic activity surpassed the lowest levels since February 2009. Meanwhile, growth numbers from around the globe continue to suggest significant contraction. China could see its economy shrink by as much as 10% during the first quarter, according to the China Beige Book.
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- Senate Minority Leader Chuck Schumer (D-NY) met with U.S. Treasury Secretary Steven Mnuchin on Monday night in attempt to press forward a deal that would provide $500 billion to distressed American companies. Democrats have referred to the bailout package as a "corporate slush fund" and raised concerns about the lack of provisions on the use of the money. Some have speculated that both sides are waiting for Thursday's unemployment insurance report before finalizing a deal.
- Many investors were stunned Monday morning when the U.S. Federal Reserve announced it would provide as much liquidity as possible to help support the U.S. economy. The central bank said it will offer "amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy." This means that QE4 is alive and well. The Fed even announced that it will begin purchasing ETFs as a method of supporting the U.S. economy.
Stocks to Watch Today: AMZN, CVX, TWTR
- This morning, Amazon.com Inc. (NASDAQ: AMZN) stock popped another 2.2%. The company leads a big surge of capital inflows into the market. Amazon announced that it has suspended nearly 4,000 accounts for violating its fair pricing policy. Following the run on food and supplies in the wake of the coronavirus outbreak, a number of sellers have engaged in price gouging on items like toilet paper and hand sanitizer.
- Shares of Chevron Corp. (NYSE: CVX) surged more than 6% after the company announced plans to slash its capital expenditures by 20% this year and suspend its stock buyback program. The ongoing slump in global oil prices has hammered producers around the globe. With energy companies in cash consolidation mode, Chevron looks like an attractive company for the long term and has a dividend of 9.5%.
- Shares of Twitter Inc. (NYSE: TWTR) are holding up this morning as the company bounces off recent lows. Jack Dorsey's company recently struck a deal with activist investors that will allow him to remain at the helm of the company. That said, Twitter announced this morning that it would withdraw its guidance. Despite concerns about the broader economic issues facing the country, the firm did say that the "stay at home" movement to combat coronavirus has resulted in a big uptick in active daily users.
- Look for earnings reports from Nike Inc. (NYSE: NKE), IHS Markit Ltd. (NYSE: INFO), Steelcase Inc. (NYSE: SCS), SYNNEX Corp. (NYSE: SNX), Grocery Outlet Holding Corp. (NYSE: GO), and AAR Corp. (NYSE: AIR).
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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.