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Stock Market News for Apr 16, 2020

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Benchmarks closed in the red on Wednesday after investors accessed disappointing corporate earnings reports and weak economic data as a result of damage caused by the coronavirus outbreak.

The Dow Jones Industrial Average (DJI) fell 445.41 points, or 1.9%, to close at 23,504.35 and the S&P 500 dropped 62.70 points, or 2.2% to close at of 2,783.36. While, the Nasdaq Composite Index closed at 8,393.18, losing 122.56 points, or 1.4%. The fear-gauge CBOE Volatility Index (VIX) increased 7.5%, to close at 40.84. Declining issues outnumbered advancing ones for 4.96-to-1 ratio on the NYSE and a 3.12-to-1 ratio on the Nasdaq favored decliners.

How Did the Benchmarks Perform?

Out of the 11 major sectors of the S&P 500, the energy sector plunged as oil prices dropped as reports indicated persistent oversupply and collapsing global demand. Both the energy and materials were the worst-performing sectors and dropped more than 4% each.

While, the banking giants reported significant declines in earnings to take charge of expected credit write-offs due to the coronavirus pandemic that has halted business operations. Airlines stocks closed mixed after several airlines’ companies reached an agreement with the U.S. Treasury for billions of dollars in grants and loans, late Tuesday. The loans are aimed at helping airlines stay afloat during the coronavirus pandemic.

Overall, the S&P index recorded eight new 52-week highs and 1 new low. Meanwhile, Nasdaq recorded 22 new highs and 24 new lows.

Mixed Q1 Earnings Reports

On Wednesday, investors mulled corporate earnings to gauge the impact of COVID-19 on the economy.

Bank of America Corporation BAC reported first-quarter 2020 earnings of 40 cents per share, missing the Zacks Consensus Estimate of 42 cents. This was because the company allocated $3.6 billion to build a reserve to fight coronavirus-related crisis. Further, a low interest rate environment also dampened net interest income despite decent loan growth. Shares of Bank of America dropped 6.5% on Wednesday. (Read More)

Citigroup Inc. C reported first-quarter 2020 adjusted earnings per share of $1.06, surpassing the Zacks Consensus Estimate of 89 cents.The company stated that higher revenues were due to strong performance in the Institutional Clients Group segment. Shares of Citigroup dropped 5.6% on Apr 15. (Read More)

On the other hand, UnitedHealth Group Incorporated UNH shares closed 4.1% higher after the company reported first-quarter 2020 earnings of $3.72 per share surpassed the Zacks Consensus Estimate by 1.92%.UnitedHealthcare and Optum drew higher revenues leafing to this outperformance. (Read More)

UnitedHealth Group carriesa Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

US Retail Sales Plunge in March

On Wednesday, the government reported that the U.S. retail sales plunged a record 8.7% in March. Sales fell for the second month in a row and the last month’s drop was more than double the biggest one-month decline during the Great Recession in 2008. The gainers in March were grocery and Internet receipts that jumped 27% and 3.1%. Health and personal stores also posted a 4.3% increase in sales.

Stocks that Made Headline

Cimarex Cuts 2020 Capex Again, Plans to Curb May Output by 30%

Cimarex Energy Co. XEC recently slashed its capital spending plan for the second time. This decision by the company, which made a similar move last month, was triggered by the ongoing market uncertainty. (Read More)

Chesapeake Sees Biggest Selloff Following Reverse Stock Split

Chesapeake Energy Corporation CHK recently performed a reverse stock split to boost share price but failed to arrest the decline in the stock, as it tumbled 37.6% yesterday. (Read More)

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


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UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
 
Chesapeake Energy Corporation (CHK) : Free Stock Analysis Report
 
Bank of America Corporation (BAC) : Free Stock Analysis Report
 
Citigroup Inc. (C) : Free Stock Analysis Report
 
Cimarex Energy Co (XEC) : Free Stock Analysis Report
 
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