DJIA Jumps 700 as Crude Oil Falls Below $20 to 18-Yr Lows
US stocks rose Monday as investors look for shares that have become cheap and can withstand the impact to the economy from efforts to stem the spread of the coronavirus.
The S&P healthcare sector jumped 4.67% on the US government’s plans to help fund the creation of enough manufacturing capacity for its coronavirus vaccine, currently under development.
Along with healthcare, the technology sector also rose more than 4% on the day, Microsoft shares rose 7%+, the biggest booster to the S&P 500.
A record $2.2-T in aid/relief and policy easing from the Fed helped equities recover some of their losses last week, with the S&P 500 posting its biggest weekly percentage gainer in over a decade and the DJIA its best since Y 1938.
Each of Wall Street’s 3 major indexes remain down more than 20% from their February highs, but investors are now assess the economic damage and identify which companies will be solid when the economy begins to accelerate again.
Wall Street is becoming convinced that the worst of the sell-off is over, and Wall Street’s fear gauge (VIX), which predicts future volatility, is still running as high as it has been since the Y 2008 financial crisis. And it is seen as a contrarian Buy signal.
In the Crude Oil markets
Brent futures were down 8%, or 2, at 22.50 bbl, their lowest in 18 yrs.
US West Texas Intermediate (WTI) Crude Oil futures fell as far as 19.92, near a Y 2002 low hit this month. Crude Oil futures have fallen by more than 68% from their early January highs.
Monday, the major US stock market indexes finished at: DJIA +690.70 at 22327.54, NAS Comp +271.77 at 7773.50, S&P 500 +85.18 at 2626.65
Volume: Trade on the NYSE came in at 1.2-B/shares exchange
- NAS Comp YTD: -13.4%
- S&P 500 YTD: -18.7%
- DJIA YTD: -21.8%
- Russell 2000: -30.6%
HeffX-LTN’s overall technical outlook for the major US stock market indexes is Bearish with a Neutral to Bullish bias in here.
Looking Ahead: Investors will receive the Conference Board’s Consumer Confidence Index for March and the S&P Case-Shiller Home Price Index for January Tuesday
Have a healthy day, stay home!