Stock Market News For Mar 24, 2020

Benchmarks closed in the negative territory on Monday after lawmakers failed to implement the massive fiscal stimulus designed to ease the economic impact of COVID-19. This overshadowed the Federal Reserves’ move to lend against student loans and credit card loans.

The Dow Jones Industrial Average (DJI) fell 582.05 points or 3%, to close at 18,591.93 and the S&P 500 shed 67.52 points or 2.9% to close at of 2,237.40. While, the Nasdaq Composite Index closed at 6,860.67, dropping 18.84 points or 0.3%. The fear-gauge CBOE Volatility Index (VIX) increased 6.7%, to close at 61.59. Declining issues outnumbered advancing ones for more than 5-to-1 ratio on the NYSE and a 3-to-1 ratio on the Nasdaq favored decliners.

How Did the Benchmarks Perform?

On Monday, the Dow closed at its lowest closing level since November 2016. The Dow was dragged down as oil prices plunged and the energy sector fell 5%. Shares of Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX) fell 3.9% and 8.7%, respectively. Both the stocks carry Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

However, chip makers stocks help the Nasdaq limit the downside, yet the benchmark ended the session at its lowest closing level in over a year.

Overall, the S&P index recorded no new 52-week highs buy 195 new lows. Meanwhile, Nasdaq recorded two new highs and 401 new lows.

Coronavirus Stimulus Package Fails Again

Investors were highly anticipating that the $1 trillion-plus coronavirus stimulus package would be passed by the U.S. Senate over the weekend. The bill which would authorize fiscal spending to stimulate the economy failed for a second time, as both the Democrats and Republicans could not come to an agreement.

Though the Treasury Secretary Steven Mnuchin said that the Senate would meet again to try and work out a deal, the failure clouded investors’ sentiments. On the other hand, the Federal Reserve announced that it will launch a barrage of programs including purchasing investment-grade securities, and will also remain committed to continue its asset purchasing program.

Stocks that Made Headline

Shell (LON:RDSa) Axes 2020 Capex by $5B, Adheres to $10B Divestment Plans

The oil industry is in disarray, thanks to the coronavirus pandemic that ripped apart most sectors until now. China's fuel demand is visibly dented in the aftermath of large-scale travel bans imposed globally. (Read More)

Alibaba (BABA) Expands in Digital Media Via Yinhekuyu Buyout

Alibaba Group Holding Limited (NYSE:BABA) is looking to expand foothold in the digital media and entertainment industry. In this regard, the company recently announced that its subsidiary, Alibaba Pictures has acquired a majority stake in Yinhekuyu Media for about $57 million. (Read More)

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