Stocks posted their biggest one-day gains since October 2008 as U.S. President Donald Trump laid out U.S. coronavirus testing plans in a Friday afternoon speech, plus more in today’s Closing Bell on Money & Markets.
The Top Story
It’s been a heck of a ride for investors in the market this week.
All three major U.S. indexes fell into bear markets by Thursday, but Friday started to look back up. The S&P 500 reached a “limit up” level — moving more than 5% — just before the opening bell.
Stocks then opened with a thunderous roar but those gains were mostly gone by lunchtime on the East Coast as equities retreated, signifying the potential for a dead cat bounce.
That all changed in the afternoon as Trump announced extensive plans for coronavirus testing around the country, including drive-thru testing centers. He also freed up $50 billion in federal aid and officially called the virus a national emergency. The Dow soared to close 1,985 points, or 9.3%, higher. The S&P 500 and Nasdaq also rose 9.3%.
As of Thursday’s close, the Dow Jones Industrial Average was down 20.7% over just 16 days — the sixth-worst decline in history.
European markets closed out their worst week since 2008.
Stock Market Update: Closing Bell*
S&P 500: 2,711 (+9.3%)
DOW: 23,185 (+9.3%)
NASDAQ: 7,874 (+9.3%)
GOLD: $1,522.50 (-4.2%)
BITCOIN: $5,394.28 (-6.22%)
U.S. 10-YEAR YIELD: 1%
*- as of 4:17 p.m.
A Big Win
This morning we told you to be on the lookout for Adobe Inc. (Nasdaq: ADBE) after the company beat analyst expectations for first-quarter earnings. Shares of Adobe rose 17.7%.
Gap Inc. (NYSE: GPS) shares moved 7.4% higher after the company reported a beat in both earnings and revenue for the holiday quarter.
M&A News
Cincinnati Bell Inc. (NYSE: CBB) is being acquired by Brookfield Infrastructure Partners L.P. (NYSE: BIP) for $2.6 billion. Under the terms of the deal, Cincinnati Bell stock will be converted into the right to receive $10.10 in cash at the closing of the deal.
BrightView Holdings Inc. (NYSE: BV) is acquiring commercial landscaping company 4 Seasons Landscape Group LLC. Terms of the deal were not disclosed.
Golden Nuggets
Precious metals continued to take a beating Friday.
All four major metals were down in the afternoon as U.S. equities managed to bounce back after Thursday’s record losses.
Gold futures moved down 4.2% to trade at $1,522.50 an ounce. Silver futures were off 8.6% to dip below the $15 mark at $1461 an ounce.
Palladium suffered the biggest hit Friday, dropping 12.4% to $1,676.80 an ounce while platinum fell 2.5% to trade at $762.30 an ounce.
Cannabis Corner
Alabama state senators approved a measure to legalize medical cannabis use in the state.
The Senate approved the legislation by a 22-11 vote, sending the bill to the House.
The bill allows patients suffering from certain conditions to qualify for the program. The conditions include anxiety, cancer, epilepsy and post-traumatic stress disorder.
The legislation came after a state commission recommended in December that Alabama legalize medical marijuana use.
Mortgage Rates Bounce
Mortgage rates rebounded two weeks after hitting record lows.
After falling to 3.13% on March 2, the 30-year fixed-rate ticked up to 3.65% as yields on mortgage bonds jumped and banks contend with increased demand for refinancing, according to Mortgage News Daily.
Home loan refinancing applications surged 79% last week, according to the Mortgage Bankers Association. Home purchase loans were up 6% for the week.
Today’s Big Winners:
Coty Inc. (NYSE: COTY) +23.3%
Norwegian Cruise Line Holdings Ltd. (NYSE:
NCLH
Kraft Heinz Co. (Nasdaq: KHC) +19.5%
Goldman Sachs Group Inc. (NYSE: GS) +17.4%
JPMorgan Chase & Co. (NYSE: JPM) +17.9%
Today’s Big Losers:
Newmont Corp. (NYSE: NEM) -11%
Zimmer Biomet Holdings Inc (NYSE: ZBH) -4.1%
Tesla Inc. (Nasdaq: TSLA) -2.5%
Check back for the most important news and numbers each day after the Closing Bell, only on Money & Markets.