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This morning, cruise stocks, casino stocks, and airline stocks all bounced higher on renewed optimism that the worst of the coronavirus is past. Only time will tell. Here's everything moving the Dow today…
First, the numbers from Monday for the Dow, S&P 500, and Nasdaq:
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Here are the most important market events and stories I'm following right now.
The Top Stock Market Stories for Tuesday
- On Tuesday, shares of United Airlines Holdings Inc. (NYSE: UAL) and Southwest Airlines Co. (NYSE: LUV) popped more than 7%. Shares of Carnival Corp. (NYSE: CCL) jumped more than 10%. And shares of MGM Resorts International (NYSE: MGM) and Wynn Resorts Ltd. (NASDAQ: WYNN) both gained more than 4.5%. The reason: Investors are betting that the worst of COVID-19 is behind us for the U.S. economy. With May coming to a close, we will be in for a very interesting June. We'll learn bank stress test results from the U.S. Federal Reserve, determine if the recent oil price rally is real, and assess whether investors are poised to hold onto stocks for the long haul or dump them after the recent rally.
- Meanwhile, the United States and China are back on the brink of more tension. Last week, China introduced a new security law that will effectively put an end to democracy in Hong Kong. The White House said Sunday that the United States will likely impose new sanctions on China if Beijing moves forward with the law and undercuts Hong Kong's freedoms.
- Let's talk the latest on COVID-19. Johns Hopkins University reports that the number of U.S. cases topped more than 1.6 million with nearly 100,000 deaths. The figure comes as investors continue to eye the recent efforts by states to lift lockdowns and reopen their economies. The lifting of "stay at home" orders comes at a time that the World Health Organization has warned of a second wave of the virus hitting the world this fall. With that in mind, Novavax Inc. (NASDAQ: NVAX) announced yesterday that it would launch the first human study for its experimental COVID-19 vaccine. The company will announce its results in July. NVAX stock rallied 20% this morning.
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Stocks to Watch Today: HTZ, TAP, MRK
- Shares of Hertz Global Holdings Inc. (NYSE: HTZ) plunged after the company announced it would file for Chapter 11. The embattled car rental company had for years faced serious challenges from the rise of ridesharing and competition. However, COVID-19 was the final nail that sank the organization. The company had spent a significant amount of money on inexpensive sedans rather than the increasingly popular SUVs that consumers wanted.
- Molson Coors Beverage Co. (NYSE: TAP) announced plans to furlough employees in North American and Europe due to coronavirus. The company also announced plans to suspend its quarterly dividend in an effort to preserve cash. The massive beer brewer had taken a big hit over the last few months due to COVID-19. The company's customer base of restaurants and bars closed, and many are unlikely to return on the other side of this.
- Finally, in deal news, Merck & Co. Inc. (NYSE: MRK) announced it has purchased the privately owned Themis, a company that is approaching COVID-19 trials for its own vaccine. Merck also announced it was about to strike a deal with a non-profit vaccine researcher called IAVI. Finally, it is working in collaboration with Ridgeback Biotherapeutics to develop an antiviral treatment to halt the virus.
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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.