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Stocks - Dow Keeps Rolling on Stimulus High

Stock MarketsMar 25, 2020 02:26PM ET
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© Reuters.

By Yasin Ebrahim 

Investing.com – Wall Street surged on Wednesday, building on its biggest one-day rally since the Great Depression a day earlier, as investors continued their bullish bets on stocks. The White House and Congress reached a deal on a $2 trillion stimulus package to support the economy through the Covid-19 pandemic, though voting has reportedly been held up by a drafting error in the bill that encouraged layoffs.

The Dow jumped 5.35%, or 1,106 points, the S&P 500 gained 4.00% and the Nasdaq Composite added 2.26%.

The coronavirus stimulus package, which could include one-time checks worth $1,200 to Americans, tax breaks and bailouts to industries hurt by the impact from the virus such as aviation and hospitality, is expected to clear the Senate in a vote later today, with a vote in the House reportedly slated for Thursday. 

 
Voting the stimulus package hit a small snag, however, after three Republican U.S. senators on Wednesday said legislative language included in the bill encouraged layoffs and would need fixes, Reuters reported.
 
"If the federal government accidentally incentivizes layoffs, we risk life-threatening shortages in sectors where doctors, nurses, and pharmacists are trying to care for the sick, and where growers and grocers, truckers and cooks are trying to get food to families' tables," Senators Tim Scott, Lindsey Graham and Ben Sasse said in a joint statement.
 
"We must sadly oppose the fast-tracking of this bill until this text is addressed, or the Department of Labor issues regulatory guidance that no American would earn more by not working than by working," they said.

The progress on the stimulus package comes after days of negotiations after it failed to secure enough votes earlier this week.

Companies that take a loan through the stimulus package, however, will be restricted from buying back their stock until one year after the loan is repaid and also will not be allowed to pay any dividends if their loan is outstanding, CNBC reported.

Energy and industrials were among the biggest gainers on the day, putting the broader market on pace for two-straight daily wins for the first time since Feb. 5-6.

Energy, one the hardest hit sectors during the coronavirus pandemic so far, has caught a bid lately, with investors piling into beaten-down stocks in the sector such as Valero Energy (NYSE:VLO) and Marathon Petroleum (NYSE:MPC).

Boeing (NYSE:BA) continued its surge on expectations it would get a large amount from the stimulus package. And CEO David Calhoun has allayed fears about the company's balance sheet, insisting that the company has other options to raise funds if the government bailout comes with strings attached.

In an interview on Fox News a day earlier, Calhoun insisted that the company had plenty of alternative options to raise funds if the U.S. government demanded a stake in the company in exchange for a bailout.

Stocks - Dow Keeps Rolling on Stimulus High
 

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Comments (23)
Dave crys
Dave crys Mar 25, 2020 4:27PM ET
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Amazing how the US can afford bailouts, tax breaks, tax cuts and wars costing trillions and trillions. But can't afford healthcare, education, social security and any program that helps people?
Jozsa Bodnar Istvan
Jozsa Bodnar Istvan Mar 25, 2020 4:23PM ET
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Slowly the world has more death in 1 single day than china had in 2 months. We try to throw money on a problem that needs medical attention. This market soaring sounds more like Venezualla than  real economy.
ottin nerner
ottin nerner Mar 25, 2020 4:04PM ET
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there goes stimulus for you.... lol
Val Rawfoodsky
Val Rawfoodsky Mar 25, 2020 4:04PM ET
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🤣👍
Junk Man
Junk_Man Mar 25, 2020 4:01PM ET
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Did Italy spike any faster or slower than China? The sooner we spike, perhaps the sooner we can move on.
Junk Man
Junk_Man Mar 25, 2020 4:01PM ET
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Did Italy spike any faster or slower than China? The sooner we spike, perhaps the sooner we can move on.
James Holmgren
James Holmgren Mar 25, 2020 3:56PM ET
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why is some are concerned those who never worked may get fed. money. They never complained when we sent millions to the world's laziest?
Midway Eholdings
Midway Eholdings Mar 25, 2020 3:37PM ET
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Any stimulus was priced in days ago. This rally is because the virus is done.
Jaro Korkiamäki
Jaro Korkiamäki Mar 25, 2020 3:37PM ET
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Done? Today again +8k new cases in the US. After weekend, US will have more cases than any other country.
Kaloyan Mladenov
Kaloyan Mladenov Mar 25, 2020 3:25PM ET
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They've been stalling a recession for 2 years now, the more they stall, the worse it will be
John Mars
John Mars Mar 25, 2020 3:14PM ET
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The stock market will pump up and we will see another crash soon. "Enjoy!"
Jaro Korkiamäki
Jaro Korkiamäki Mar 25, 2020 3:14PM ET
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Join the Enron ride!
Nikolas Stark
Nikolas Stark Mar 25, 2020 3:10PM ET
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High because of injection isn't doing good for long run. It also happens on drugs. Stop stimulating economy by worthless digital money manipulation for wall street, it is not real economy. The main street is the one who will suffer in long term.
katya litski
katya litski Mar 25, 2020 3:05PM ET
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if giving people money makes stocks go up, gov should give more money
Remco Ba
Remco Ba Mar 25, 2020 2:59PM ET
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Using stimulus to pump up the share value of companies that will fail anyways because people stop buying their products for the next 6 months. Smart move
Archie Goldstern
Archie Goldstern Mar 25, 2020 2:44PM ET
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Dow will touch the 18.000 again
James Dorward
James Dorward Mar 25, 2020 2:39PM ET
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Has the market bottomed? Incrementally go back in?
max platt
max platt Mar 25, 2020 2:39PM ET
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He is terrible for markets, only great for HIS market
Thom Miller
Thom Miller Mar 25, 2020 2:36PM ET
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The stimulus package would have been half as large had Donny Boy jumped on the virus much earlier instead of claiming it to be a hoax. And of course he accepts absolutely no responsibilty for this delay. Sad.
Bill Bob
Bill Bob Mar 25, 2020 2:03PM ET
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they don't give a *******just to boost stock market
Ben Dover
Ben Dover Mar 25, 2020 1:57PM ET
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Yet these Senators are still talking talking talking.
Rod Deh
Rod Deh Mar 25, 2020 1:57PM ET
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this is not good ... we need to start doing something about our debt but all they care about is votes. in 10 years we are all screwed
Elvis Durant
Elvis Durant Mar 25, 2020 1:57PM ET
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exactly. the 2030 DEPRESSION. Exactly 100yrs from the 1st one....take notes
Sean Ng
Ultraman007 Mar 25, 2020 1:51PM ET
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Trump print out *****notes and flood the market.. Wait for the consequences..
katya litski
katya litski Mar 25, 2020 1:43PM ET
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looks like the cure for covid19 already existed. it looks like it costs $2T
Greg Lewis
Greg Lewis Mar 25, 2020 1:43PM ET
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You are all sick sick people with your hate.....and God words maybe not strike you now but wait until your standing at the gates where you soul arrive..
Gamer Turtle
GamerTurtle Mar 25, 2020 1:43PM ET
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another sick cult that threatens ppl while calling other sick. lmao.
Dar Smith
Dar Smith Mar 25, 2020 1:18PM ET
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Team Trump: Let the virus rip through the US and take out all the costs of the elderly and people with pre-existing conditions. Let the economy roar.
Russ Green
Russ Green Mar 25, 2020 1:18PM ET
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What else are you expecting Dr. Trump to do?
Luis Angulo
Luis Angulo Mar 25, 2020 1:06PM ET
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Trump save América again...
Jeremy Gautier
Jeremy Gautier Mar 25, 2020 1:06PM ET
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no Xerox save the world. Without good quality printers world was lost lol
 
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