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Stock Market News for Jun 16, 2020

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·4 min read
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Benchmarks closed higher on Monday after the Federal Reserve announced that it will purchase corporate bonds. The news boosted investor’s sentiment that was weighed down by a spike in new coronavirus cases as states continue to reopen.

The Dow Jones Industrial Average (DJI) rose 157.62 points higher, or 0.6%, to close at 25,763.16 and the S&P 500 added 25.28 points, or 0.8% to close at of 3,066.59. While, the Nasdaq Composite Index closed at 9,726.02, adding 137.21 points, or 1.4%. The fear-gauge CBOE Volatility Index (VIX) decreased 4.7%, to close at 34.40. Advancing issues outnumbered declining ones for 1.97-to-1 ratio on the NYSE and a 2.69-to-1 ratio on the Nasdaq favored advancers.

How Did the Benchmarks Perform?

All the major sectors of the S&P 500 ended in the green, gains were lead by financials and consumer staples sectors. The financial sector jumped 1.4% and the S&P 500 Banking index added 1.6%.

Gain in health-care stocks boosted the Nasdaq as fears of coronavirus infections resurged. Rally in shares of Zoom Video Communications Inc. ZM also boosted the index. Shares of Zoom Video hit record high on Monday adding 8.9% on renewed pandemic fears amid a resurgence of COVID-19 cases in China and the United States.

Zoom Video flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

While the S&P index recorded no new 52-week highs or lows, the Nasdaq recorded 46 new highs and 10 new lows.

Fed to Buy Corporate Bonds

On Monday, the Federal Reserve announced steps to keep credit flowing to big businesses as the economy starts to reopen after nearly three months. Indexes plunged on Jun 11 as signs of a resurgence of the COVID-19 clouded investors’ sentiment.

The Fed said that it would expand the scope of its $750-billion emergency corporate debt loan facility by buying a broad and diversified portfolio of debt issued by individual corporates. In that way, more money will flow into the hands of big businesses at a time when the financial system is going through high stress following the sharp decline in economic activities from the pandemic. The iShares iBoxx Investment Grade corporate bond ETF rose 1% after the Fed announcement.

Meanwhile, confirmed coronavirus cases in the United States stands around 2.1 million, with nearly 116,000 deaths, per the Johns Hopkins University data. In the United States, a record number of new coronavirus cases have been reported in Alaska, Arizona, Arkansas, California, Florida, North Carolina, Oklahoma and South Carolina in the past three days.

Stocks that Made Headline

Antero Resources Closes ORRI Deal, Stock Up Nearly 15%

Antero Resources Corporation AR recently closed an overriding royalty interest (ORRI) transaction with Sixth Street Partners, a private investment firm. (Read More)

First Horizon & IBERIABANK Merger Gets Regulatory Nod

Recently, the all-stock merger of equals between Tennessee-based First Horizon National Corporation FHN and Lafayette, LA-based IBERIABANK Corporation IBKC received regulatory nod from the Board of Governors of the Federal Reserve System. (Read More)

Here's Why BP Decides to Write Off Up to $17.5B From Assets

BP plc BP has estimated a write-off of up to $17.5 billion from its assets value following the downward revision of its long-term oil and gas prices. (Read More)

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First Horizon National Corporation (FHN) : Free Stock Analysis Report
 
BP p.l.c. (BP) : Free Stock Analysis Report
 
IBERIABANK Corporation (IBKC) : Free Stock Analysis Report
 
Antero Resources Corporation (AR) : Free Stock Analysis Report
 
Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report
 
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