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Stocks - Wall Street Bounces Higher on Oil Surge

Published 04/02/2020, 11:27 AM
Updated 04/02/2020, 11:29 AM
© Reuters.

© Reuters.

By Kim Khan 

Investing.com - Soaring oil prices helped Wall Street shake off harrowing layoff numbers Thursday and push the major indexes firmly into the green after a rocky open.

Crude prices jumped 20% after President Donald Trump tweeted he expect Saudi Arabia and Russia to cut production by at least 10 million barrels and possibly up to 15 million barrels per day. Whether that's even obtainable with the full cooperation of OPEC+ is still unclear.

The Dow rose 0.9%, helped by energy components Chevron (NYSE:CVX) and Exxon (NYSE:XOM), both up more than 7%.

The S&P 500 rose 1.2% and the Nasdaq composite gained 0.9%.

The SPDR S&P Oil & Gas Exploration & Production ETF (NYSE:XOP) rose 5.8%.

The mood was decidedly more bearish at the open as more evidence of the huge economic disruption of Covid-19 arrived.

Another 6.65 million people filed for unemployment benefits last week, over twice as many as the 3.3 million who claimed a week earlier (the number was revised up by 20,000). In all, 6% of the U.S. workforce have hit the jobless rolls in just two weeks.

Luckin Coffee (NASDAQ:LK) stock fell 71% after the Chinese coffee house chain said it had suspended its chief operating officer and withdrew its last two quarterly reports while it investigates suspicions of "misconduct".

Short-seller Muddy Waters Research had called the stock a fraud in January after evaluating anonymous research that suggested the company’s sales were inflated.

Starbucks (NASDAQ:SBUX) stock rose 2.8% on the prospect of a major competitor in China leaving the market.

Zoom Video (NASDAQ:ZM) stock fell another 5.2% on growing concerns about its data privacy policy, and about its valuation, after an uncontrolled surge in demand on the back of the Covid-19-driven boom in working from home.

The company reported earlier that average daily users had soared to 200 million from a maximum of 10 million before the crisis. It didn’t break out how many of them were using the premium, paid-for service.

Latest comments

Just forget it I get the picture
Wow... back in the red. Shocking.  Who could possibly have seen that coming?  :)  :)  :)
I don t get, how the index goes upp with all the bad news. What is going on?
"Priced in" is such a broker lie.  Nobody has any idea how bad this will be from a valuation perspective.  Shiller PE ratio index still shows stocks are wayyyyy overvalued historically.  What we are witnessing is Trump and his boys pumping and dumping their stocks with taxpayer money via the CARE stimulus.  Greatest heist in American history.
AROB, use your commonsense, everyone know it gonna be alot of bad news. Everyone short the market, if this really happen how many free millionaire will be born? Dont rely on those bad news or data that the whole world know .Think twice before you trade.
LOL. Everyone already knows the exact amount of future bad news and already priced in the worst case scenario?  How naive can a person be?
The Dip is coming
super interesting link Peter Hopwood. Who is behind oilprice.org though?
US has to contribute to a third or a half of this cut for it to be remotely possible. Cant expect others to sacrifice market share while the biggest oil producer and beneficiary of this cut simply takes advantage
Not consider about increase of patient now? may be tomorrow..
misguiding. no base for increase in near future for the oil futures...
Russia and Saudi say nothing about this. Trump talks Only hope for his political unterests.
Oil on its way to $17/barrel next week.  Even IF there was an oil deal.. where is the demand?  No lockdown lift = no demand.  Meanwhile, another 6-10Million will file unemployment next week.  Good luck everybody!
There is no deal. Put in has not talked to SA. Don't tell the futures buyers and people propping up this scam market right now.
https://oilprice.com/Energy/Energy-General/Russia-Oil-Producing-Countries-Not-Discussing-Any-New-Deal.html
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