U.S. markets closed

GLOBAL MARKETS-Stocks rebound further as markets await $2 trillion U.S. stimulus boost

By Herbert Lash and Marc Jones

(Adds oil settlement prices, details)

* MSCI world index adds to biggest climb since 2008 crisis

* Wall Street also on track for back-to-back gains

* Gold retain most of advance after big jump

* Dollar slips as markets wait for U.S. stimulus package

* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

By Herbert Lash and Marc Jones

NEW YORK/LONDON, March 25 (Reuters) - The dollar slid and global equity markets marched higher on Wednesday, poised for a second day of gains on optimism $2 trillion in U.S. fiscal stimulus will dampen the economic shock the coronavirus pandemic already has started to inflict.

U.S. senators will vote Wednesday. Top aides to Republican President Donald Trump and senior Republican and Democrat senators agreed on the unprecedented bill after five days of marathon talks.

Hopes the bill, which is nearly half the $4.7 trillion the U.S. government spends annually, will ease an expected recession lifted world stock indexes for back-to-back gains for the first time since markets sold off a month ago.

Europe's main markets in London, Frankfurt and Paris were struggling to stay positive after ripping 4%-5% higher and oil prices swung from 3% up to 3% down. Wall Street also teetered though it mostly remained more than 1% higher.

The Dow Jones Industrial Average soared more than 11% on Tuesday in its biggest single-day percentage gain since 1933 and the benchmark S&P 500 jumped 9.4% - its tenth best day on record out of 24,067 trading sessions since a daily data series started in 1927.

The stimulus package marks progress but the devil's in the details, said Ron Temple, head of U.S. equity at Lazard Asset Management in New York. The legislation is not available to read to know how it will be executed or when money arrives at households and small businesses gain access to funding, he said.

"This is not the all-clear; it's just material progress," Temple said.

"Until we know we can go back to work safely, that we can go to restaurants and go to stores and engage with other humans in close proximity, I don't think you can make an economic or a market call. It's premature to be trying to call the bottom."

The stimulus includes a $500 billion fund to help hard-hit industries and a comparable amount for direct payments of up to $3,000 apiece to millions of U.S. families.

It will also include $350 billion for small-business loans, $250 billion for expanded unemployment aid and at least $100 billion for hospitals and related health systems.

Countries that have locked down their populations to prevent the spread of the coronavirus need to use the time to find and attack the virus, the World Health Organization said.

As the United States works to screen thousands for the coronavirus, a new blood test offers the chance to find out who may have immunity - a potential game changer in the battle to contain infections and get the economy back on track.

Over 450,000 people have been infected globally and more than 20,000 have died, according to a Reuters tally.

Data on Wednesday pointed to a fast-slowing economy that analysts said signaled the United States already is in recession.

New orders for key U.S.-made capital goods fell sharply in February as demand for machinery and other products slumped, suggesting a deepening contraction in business investment.

The benchmark S&P 500 is still nearly $8 trillion below its mid-February high, and investors expect more sharp swings. Wall Street's fear gauge eased overnight but was on the rise again ahead of Wednesday's open.

MSCI's gauge of stocks across the globe surged 2.65% and emerging market stocks rose 4.32%.

The pan-European STOXX 600 index rose 0.96%.

The Dow Jones Industrial Average rose 661.9 points, or 3.2%, to 21,366.81. The S&P 500 gained 35.76 points, or 1.46%, to 2,483.09 and the Nasdaq Composite added 34.47 points, or 0.46%, to 7,452.33.

In the currency markets, the dollar slipped for a third straight session as a scramble for liquidity was soothed by the super-sized U.S. stimulus plan, though it was starting to look a little stronger again.

The dollar index fell 0.216%, with the euro up 0.44% to $1.0834. The Japanese yen weakened 0.24% versus the greenback at 111.51 per dollar.

The risk-sensitive Australian dollar jumped over the 60-U.S. cent mark for the first time in a week.

Bond markets were also calmer. Benchmark U.S. Treasuries were yielding 0.7987% while in Europe Germany's 10-year yield edged a basis point higher to -0.296%, tailed by other higher-rated government debt.,

European Central Bank chief Christine Lagarde asked euro zone finance ministers during a videoconference on Tuesday to seriously consider a one-off joint debt issue of "coronabonds", officials told Reuters.

In metals markets, gold changed hands at $1,608.78 an ounce , retaining most of Tuesday's gains of almost 5%, its biggest jump since 2008.

U.S. crude prices rose slightly, bolstered by progress on a massive pending U.S. economic stimulus package.

Brent crude gained 24 cents to settle at $27.39 a barrel. U.S. crude futures rose 48 cents to settle at $24.49 a barrel.

(Reporting by Herbert Lash; Editing by Bernadette Baum and Lisa Shumaker)

  • Bank of America’s Race to Avoid Public Shaming Underscores the Perils of the Crisis
    U.S.
    Bloomberg

    Bank of America’s Race to Avoid Public Shaming Underscores the Perils of the Crisis

    The drama began when California Governor Gavin Newsom called out the bank for not offering 90-day grace periods to mortgage borrowers affected by the coronavirus, despite such pledges by rivals including JPMorgan Chase & Co. and Wells Fargo & Co. A journalist tweeted the lashing, and then Corden reposted it to his 10.7 million followers. The bank raced to correct what it called the governor's mistake. Just over an hour later, the firm promised Corden it would defer payments on home loans for as long as the crisis requires.

  • Business
    Barrons.com

    The Dow Ignored the Spread of Coronavirus Last Week. It Won’t Be Able to Anymore.

    As the disease has spread, fears about the possible death toll and the extent of the economic disaster roiled global financial markets. The Dow Jones Industrial Average rallied more than 20% off its low, putting it in a bull market, at least by some definitions, though it remains down 24.2% on the year. It is far from contained, and Covid-19, the respiratory disease caused by the virus, continues to spread.

  • Is Abbott A Buy After Gaining FDA Blessing For Its Coronavirus Test?
    Business
    Investor's Business Daily

    Is Abbott A Buy After Gaining FDA Blessing For Its Coronavirus Test?

    So, while the medical company's sales and earnings have grown consistently for several years, Abbott isn't lining up with CAN SLIM rules for investing. Investors are advised to seek companies with recent quarterly earnings and sales growth of 20%-25%. The bigger, the better.

  • The Airlines Most in Danger of Going Under During the Crisis
    Business
    Bloomberg

    The Airlines Most in Danger of Going Under During the Crisis

    Airlines could lose a quarter of a trillion dollars in revenue this year, according to the International Air Transport Association, as travel comes to a standstill with countries locked down to fight the coronavirus. Most carriers will go bankrupt by the end of May if they can't find support, Sydney-based CAPA Centre for Aviation said last week. Using the Z-score method developed by Edward Altman in the 1960s to predict bankruptcies, Bloomberg News filtered out listed commercial airlines to identify the ones most at risk of going bust, based on available data.

  • Warren Buffett Is Only Making Money On Three Coronavirus Stocks
    Business
    Investor's Business Daily

    Warren Buffett Is Only Making Money On Three Coronavirus Stocks

    The coronavirus stock market crash is costing investors trillions. Buffett's Berkshire Hathaway is down nearly $60 billion on its U.S.-listed holdings this year. Online retailer Amazon.com, drugmaker Biogen and consumer staples retailer Kroger, are the only stocks in Berkshire Hathaway's lineup of 51 U.S.-listed stocks that are up this year.

  • Business
    Financial Times

    Investors should brace for another market dive

    At the height of the market turmoil during the previous financial crisis, a Federal Reserve Bank of New York official confidently told me they would keep throwing stuff at the wall until something stuck. This week the US central bank ran some moves from its 2008 playbook — and then went far beyond it. Adding to the open-ended buying of US government bonds, the Fed will load up on investment-grade corporate debt for the first time.

  • What's Next for the Markets? Here's What the Charts and Data Say
    Business
    TheStreet.com

    What's Next for the Markets? Here's What the Charts and Data Say

    While psychology data continues to send a positive message, the McClellan one-day oscillators have been pushed well into overbought territory, suggesting some pause/retracement (already being exhibited Friday) of the recent rally. On the Charts All the major equity indices closed higher Thursday with positive internals on the NYSE and Nasdaq as trading volumes declined from the prior session. Further technical improvement was seen on the charts as all the indices, with the exceptions of the Dow Jones Transports (see below) and Value Line Arithmetic Index, which closed above their near-term resistance levels, while the Nasdaq Composite, Nasdaq 100, and Value Line closed above their near-term ...

  • Zoom Technology shares suspended
    Business
    Yahoo Finance Video

    Zoom Technology shares suspended

    Zoom Technologies shares were suspended through April 8th, after the stock was confused with Zoom Video. Yahoo Finance's Julie Hyman breaks down the news.

  • Will you get a ‘coronavirus check’? $2 trillion stimulus package explained
    Business
    Yahoo Finance

    Will you get a ‘coronavirus check’? $2 trillion stimulus package explained

    Congress has passed a $2.2 trillion coronavirus stimulus package to help Americans affected by the coronavirus pandemic. The bill includes direct cash assistance, additional unemployment funds, and tax credits to employers. The most well-known piece of the bill — stimulus checks — is available only to eligible Americans, based on tax returns.

  • Dead deals, slashed prices: Coronavirus drags down Southern California home sales
    Business
    LA Times

    Dead deals, slashed prices: Coronavirus drags down Southern California home sales

    For context, research from Zillow shows that during the 2003 SARS outbreak that lasted for several months in Hong Kong, the city's housing market essentially froze in place. Home prices didn't fall much, while the number of transactions plunged as people kept their distance from one another to save lives. After the epidemic was over, transactions snapped back to normal volumes,” Zillow chief economist Svenja Gudell wrote in a recent report, noting the bounce back corresponded with a similar rebound in gross domestic product.

  • Six High Dividend Stocks You Can Count On
    Business
    Investor's Business Daily

    Six High Dividend Stocks You Can Count On

    It's easy to chase high dividend stocks — and even easier to lose money on them if they fall. There's a better way to find high dividend yields you can count on to make you money — which includes stocks like REIT Coresite Realty, banks like N B T Bancorp and retailer Home Depot. What's an investor looking for high dividend stocks to do then?

  • Gold Forecast – The Real Bottom Should Come in May
    Business
    FX Empire

    Gold Forecast – The Real Bottom Should Come in May

    I'm very bullish on gold long-term and believe prices are going much, much higher. But in the meantime, I think we need to be careful. Our cycle work indicates the next sustainable low may not arrive until May or June.

  • Denver-based national restaurant company cuts staff by 97% to preserve cash
    Business
    American City Business Journals

    Denver-based national restaurant company cuts staff by 97% to preserve cash

    Denver's The One Group Hospitality (NYSE: STKS) — parent company to the STK steakhouse and Kona Grill chains — has cut its workforce from roughly 4,000 employees to less than 100 in order to hold onto cash during the coronavirus crisis, its CEO said Thursday. Most of its 20 STK locations worldwide and 24 Kona Grill stores are operating with skeleton crews of two to three employees who are cooking and offering the normally full-service restaurant menus for takeout and delivery only because of coronavirus restrictions, CEO Emanuel “Manny” Hilario said during the company's quarterly earnings call. Four domestic and two international STK restaurants have had to close up shop altogether temporarily, he added.

  • Business
    Fox Business

    Which oil stocks are best positioned when crude rebounds from crash?

    The battered S&P 500 Energy Sector has raced into bull-market territory despite crude oil prices treading near 18-year lows. The sector gained 22.27 percent in the five days through Wednesday, making it the third-fastest trek from a bear market low to a bull market in history, buoying holders of the sector-linked Energy Select SPDR Fund. “The pain trade is clearly a rally in highly-indebted companies, and many oils clearly fit that category,” wrote Paul Sankey, managing director at Mizuho Securities.

  • Hotels are 'hurting big-time' and many will 'go under,' travel industry expert says
    Business
    Yahoo Finance

    Hotels are 'hurting big-time' and many will 'go under,' travel industry expert says

    Congress signed off on a $2 trillion coronavirus stimulus bill on Friday that provides aid to individuals, small businesses, and large corporations — including America's airlines, which will get billions in direct grants in exchange for giving the federal government stakes. The plight of airlines commands much focus, as their businesses have all but come to a stand-still amid the coronavirus pandemic. CBS Travel Editor Peter Greenberg forecasts a grim future for hotel chains, telling Yahoo Finance's On The Move on Thursday that many will “go under.”

  • Trump faces off with General Motors over ventilators
    U.S.
    Yahoo Finance Video

    Trump faces off with General Motors over ventilators

    Yahoo Finance's Sibile Marcellus discusses General Motors' move to produce ventilators with Ventec, after President Trumo tweeted in part "As usual with “this” General Motors, things just never seem to work out."

  • Cramer Reveals Stock Favorites, Says Intuitive Surgical A 'Winner'
    Business
    Benzinga

    Cramer Reveals Stock Favorites, Says Intuitive Surgical A 'Winner'

    Answering questions from callers, former hedge fund manager and CNBC “Mad Money” host Jim Cramer revealed his favorite stock picks Thursday. Smartphone maker BlackBerry Ltd (NYSE: BB)  is clearly not Cramer's favorite. Describing it as “absolutely nothing,” he suggested a caller take their money if there's anything left and buy Marvell Technology Group Ltd (NASDAQ: MRVL) because “5G is king.”

  • Here's 'the problem' with the IRS coronavirus tax filing extension, one expert says
    Business
    Yahoo Finance

    Here's 'the problem' with the IRS coronavirus tax filing extension, one expert says

    As the coronavirus escalates across the United States, businesses and individuals are concerned with how this will affect their taxes, despite the deadline being extended to July 15. That changed deadline is not a blanket extension for all taxes, tax litigation consultant and author of “Small Business Tax Guide” Daniel Pilla told Yahoo Finance's On the Move on Thursday. It only applies to income taxes and not employment taxes businesses have to pay, he pointed out.

  • These Are The 5 Best Stocks To Buy And Watch Now
    Business
    Investor's Business Daily

    These Are The 5 Best Stocks To Buy And Watch Now

    The most recent stock market uptrend has turned into a fierce bear market. The Dow Jones Industrial Average, S&P 500 index and Nasdaq composite have been slammed due to reverberations from the coronavirus becoming a global pandemic. The virus is already hitting economic growth and global supply chains.

  • Mortgage rates fall sharply as the Federal Reserve brings stability to the mortgage market
    Business
    MarketWatch

    Mortgage rates fall sharply as the Federal Reserve brings stability to the mortgage market

    Mortgage rates seesawed lower this week after the Federal Reserve stepped in to provide some assurance to lenders who were at a loss as to how to price home loans amid the disruptions caused by the coronavirus emergency. The 30-year fixed-rate mortgage dropped to 3.50% during the week ending March 26, Freddie (FMCC) reported Thursday. That represented a significant decrease of 15 basis points from last week, when rates surged to the highest level since January.

  • 3 “Strong Buy” Dividend Stocks Yielding At Least 10%
    Business
    TipRanks

    3 “Strong Buy” Dividend Stocks Yielding At Least 10%

    The company showed revenue gains in the fourth quarter, which was a relief after it missed in Q3. The Q4 top line came in at $2.1 billion, beating the forecast by 2%, and growing a half-percent sequentially. EPS missed the forecast by one cent, coming in at 24 cents per share.

  • Business
    American City Business Journals

    Cruise company stocks sink further as aid is left out of stimulus package

    Stock price gains for public cruise companies began to quickly disappear as it became apparent the government's stimulus package won't be the saving grace investors in South Florida's cruise giants were hoping for. The bill, passed by both the U.S. Senate and House of Representatives, states that in order for a business to qualify for capital, companies must be organized in the U.S., and have the majority of its operations and employees based in the country. That disqualifies Doral-based Carnival Corp.

  • Dow Keeps Bulk Of 4,382-Point Gain Since March Low; What 5 Charts Say About The Market Now
    Business
    Investor's Business Daily

    Dow Keeps Bulk Of 4,382-Point Gain Since March Low; What 5 Charts Say About The Market Now

    In one of its most dramatic rebounds in decades, the Dow Jones Industrial Average finished the week up almost 13% despite suffering a 4% loss Friday. Data from the Center for Systems Science and Engineering (CSSE) at Johns Hopkins University showed confirmed coronavirus cases surpassing the 100,000 level in the U.S. Yet from a March 23 low of 18,213, the 30-stock blue-chip index has ripped as much as 24% higher. At least eight of the 30 Dow Jones industrials stocks fell 7 points or more.

  • Hedge Funds Have Never Been More Bullish On MFA Financial, Inc. (MFA)
    Business
    Insider Monkey

    Hedge Funds Have Never Been More Bullish On MFA Financial, Inc. (MFA)

    In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each stock might be going. Hedge funds and other institutional investors usually invest large amounts of capital and have to conduct due diligence while choosing their next pick. With this in mind, let's take a look at the recent hedge fund activity surrounding MFA Financial, Inc. (NYSE:MFA).

  • America’s Shortage Of This Metal Keeps Trump Up At Night
    Business
    Oilprice.com

    America’s Shortage Of This Metal Keeps Trump Up At Night

    So, when a Canadian junior miner emerges as the owner of three properties in Ontario that could provide the only new supply of one of these critical metals, North America sees hope. The metal is cesium, and the miner is Power Metals--a little-known company with a big-name geologist that just put itself on the critical metals map. The 5G revolution, American military defense, healthcare and even time itself are dependent on this one critical metal that China monopolizes and that the U.S. is desperate to get more of.