Saturday, March 28, 2020

Time for a 66-Hour Break


By Alex Eule |  Friday, March 27
The Long Wait. After the best three-day rally in 89 years, stocks couldn't hold their momentum. The S&P 500 finished Friday down 3.4%, even as Congress approved its $2 trillion coronavirus rescue package and President Donald Trump signed the bill into law. By the time it happened, investors had moved on. Now, there's almost 66 hours before markets re-open, and investors are clearly nervous about what could transpire over the weekend and into next week. 
But before we go there, it's worth wrapping up a turbulent five days: There was a bull market born in just three days; there was a stimulus package that was unimaginable until a few weeks ago, and it ultimately passed with complete bipartisan support; there was the Federal Reserve chairman promising to do whatever was needed to keep the economy afloat; and there were at least 47,000 new Covid-19 cases identified in the U.S. That list barely scrapes the surface.
Perhaps the most stunning stock story of the week came from Boeing. The beleaguered aircraft maker finished the week up 71%. My colleagues in the Dow Jones data group sent that number along tonight, noting it "isn't a typo." Boeing  investors drew hope from the stimulus bill and news that production of its 737 MAX jet could be restarting in a couple months. Barron's Al Root runs down all the reasons for Boeing's big week.  
In the end, the S&P 500 finished the week up 10.3%. The Dow Jones Industrial Average gained 12.8%, and the Nasdaq Composite rose 9.1%. 
As for next week, a new wave of earnings could shed more light on our socially-distanced economy, plus we'll get new data on jobs and consumer confidence. Until then, take a deep breath, don't think too much about stocks, and stay healthy.

No comments:

Post a Comment