Abbott Laboratories (ABT) stock price gains more than 7%, at 79.97+5.41 (+7.26%). Microsoft Corporation (MSFT) stock is among the most active stocks with a stock price of 159.86+10.16 (+6.79%). B2W – Companhia Digital (BTOOY) stock is among the stock losers today, with a stock price of 20.60-12.05 (-36.91%).
US stocks had a pause today and all major stock indexes fell more than 3.5% after the recent 3-day stock market rally. Dow fell more than 900 points. The selloff for stocks gained momentum in the past 2 hours of the trading session. At close, this is the stock market update:
The bond market is still undecisive, all the 10-year bond yield cannot move significantly higher for now. If there is a stock bottom formed then the risk-on mood and sentiment may result in bond selling, bond yields higher, and a rotation of funds into riskier financial assets such as stocks, equities.
US stock futures erase their previous gains, now focus is on the stimulus package reached for the US economy
The US stock market today will place importance on the stimulus package reached to support the US economy and on the economic news released the durable goods orders, before the open of the trading session. The forecast for the monthly durable goods orders figure is -1.0%. Any worse than expected reading may be negative for stocks today.
The stock market continues to be to a very large degree uninvestable as volatility remains at very high levels. As of 8:05 AM, Wednesday, March 25, 2020, Eastern Time (ET) the Vix index is at 68.77 +7.18(+11.66%). This sustained extreme volatility needs to be reduced so that a more clear picture is made about whether a bottom was formed in the previous trading sessions or not. Any decisions for stocks to buy or stocks to sell now favor short-term trading. This is because strong gains tend to give way to profit-taking selloffs, and we need to see the real implications of the coronavirus effects with the actual release of stock earnings.
NIKE, Inc. (NKE) stock earnings
“Nike, Inc (NKE) reported better-than-expected quarterly revenue as digital demand offset a sales decline in China resulting from the coronavirus shutdowns.
Revenues for the third quarter ended Feb. 29, rose 5% to $10.1 billion as overall digital growth increased 36% during the same period, the company said late on Tuesday. Greater China revenues dropped for the first time in 22 consecutive quarters of double-digit growth, declining 4% during the period. Diluted earnings per share slid 22 percent to $0.53.”
Nike stock closed at 72.33+9.53 (+15.18%), on Tuesday, March 24, 2020. If we see soon more companies reporting better than expected earnings, then there could be great chances for a stock market bottom to have been made at these price levels. The fundamental news and other news related to fiscal policy, and hopefully any positive news related to the coronavirus outbreak are key catalysts.
US stock market closed lower, Dow fell more than 580 points
The major US stock market indexes, fell today, as news about the coronavirus bill delayed and additional measures by the Fed to support the economy did not inspire confidence to traders and investors. At close today, March 23, 2020, this is the latest stock market update:
US stock market closes higher, Nasdaq outperforms today
All major US stock indices closed higher today, March 19, 2020. Tech stocks outperformed, but small-cap stocks were the stocks with higher buying interest today, as Russell 2000 closed up more than 6%. Dow regained the 20,000 level and Nasdaq the 7,000 level.
Uber Technologies, Inc. (UBER) stock rallied today, with a stock price at close of 20.49+5.67 (+38.26%).
“(Reuters) – Shares of Uber Technologies Inc surged as much as 44% on Thursday after Chief Executive Officer Dara Khosrowshahi said it had plenty of cash on hand to tide over the coronavirus crisis and signaled a recovery in some parts of its business.
“We are very fortunate to have a strong cash position with about $10 billion of unrestricted cash as of end of February,” Khosrowshahi said on a call with analysts before markets opened. “In any crisis, liquidity is key.”
“Stocks, bonds and commodities fell Wednesday in a simultaneous selloff that suggests investors are seeking to raise cash quickly to cope with the economic disruption sparked by the coronavirus pandemic.”
“Ongoing developments surrounding the coronavirus outbreak will remain in focus Wednesday. U.S. stocks rebounded Tuesday after the Trump Administration indicated that it is considering a fiscal stimulus package of more than $1 trillion.
Analysts warn that it will get worse before it gets better. “The turmoil in financial markets caused by the global spread of COVID-19 shows little sign of abating, despite policymakers’ efforts to contain the fallout,” Capital Economics wrote in a note Tuesday. “Our view remains that until evidence emerges that the spread of the virus is slowing down, risky assets are unlikely to rebound on a sustained basis.”
Being financial analysts our point of view on stock trading, stock investing is that with the sustained increased volatility it is very hard to invest now in stocks. Risk is too high and we must wait for the next quarterly reports and earnings releases, which should not be good. We favor defensive stocks and stocks with a good and attractive dividend yield. As long as the stock market is up more than 5% per day, and then falls almost the same or more the following day, it is too risky to invest in stocks. Choosing defensive sectors is the safest option for now. For most active traders, daily stock trading and stock investing may offer plenty of short-term trading opportunities with stocks to buy and stocks to sell. But a lack of a clear trend makes the US stock market a roller-coaster. And evidence of a bottom for stock prices and stock indices does not exist yet.