Stocks extend winning streak to 7 days as Trump signs executive orders for coronavirus relief
Trump signed 4 executive orders granting coronavirus relief
EShares CEO Joel Shulman discusses his outlook for tech stocks.
U.S. equity markets finished mixed on Monday after President Trump signed executive orders to provide COVID-19 relief while Congress ironed out its differences.
The Dow Jones Industrial Average climbed 359 points, or 1.31%, while the S&P 500 was higher by 0.28%, extending its winning streak to seven days, the longest since April 2019. The tech-heavy Nasdaq Composite, meanwhile, continued its recent underperformance, falling 0.39%.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 42221.88 | +427.28 | +1.02% |
| SP500 | S&P 500 | 5782.76 | +70.07 | +1.23% |
| I:COMP | NASDAQ COMPOSITE INDEX | 18439.170746 | +259.19 | +1.43% |
Trump’s orders, signed Saturday, grant unemployed Americans an extra $400 per week, defer the payroll tax through the end of the year and postpone student-loan payments and put a freeze on evictions.
Looking at stocks, economically sensitive names lifted the Dow, with Caterpillar, Boeing and Chevron among the top performers.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CAT | CATERPILLAR INC. | 383.30 | +6.77 | +1.80% |
| BA | THE BOEING CO. | 151.01 | -4.12 | -2.66% |
| CVX | CHEVRON CORP. | 153.43 | -0.54 | -0.35% |
Elsewhere, Eastman Kodak Co. shares were sharply lower after a $765 million loan aiding its pivot into manufacturing drug ingredients was put on hold by the United States International Development Finance Corporation due to an investigation into how the news was announced and stock options received by company executives.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| KODK | EASTMAN KODAK CO. | 5.02 | +0.32 | +6.81% |
| TWTR | NO DATA AVAILABLE | - | - | - |
Twitter Inc. held preliminary talks with TikTok about a deal for the social media app’s U.S. operations, according to The Wall Street Journal. Microsoft, which announced its pursuit earlier this month, remains the front runner.
Looking at earnings, Berkshire Hathaway's operating profit slid 10% versus last year due to a $9.8 billion writedown by its Precision Castparts business; however, overall revenue was up 86% as its investment portfolio rose by $30 billion. The Warren Buffett-led conglomerate bought back a record $5.1 billion of stock during the quarter.
Marriott International Inc. swung to a quarterly loss as the COVID-19 pandemic resulted in a 72% year-over-year revenue decline. Worldwide occupancy, which reached a low point of 11% in early April, was up to 34% on Aug. 1.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BRK.A | BERKSHIRE HATHAWAY INC. | 667,521.58 | +2,771.58 | +0.42% |
| MAR | MARRIOTT INTERNATIONAL INC. | 259.66 | +3.23 | +1.26% |
| GOLD | BARRICK GOLD CORP. | 18.87 | -0.02 | -0.11% |
Barrick Gold Corp. reported profit and revenue that topped Wall Street estimates during the three months through June as the miner tweaked operations to weather COVID-19. The Toronto-based gold explorer raised its quarterly dividend by 14% to 8 cents per share.
Looking at commodities, gold jumped $14.30 to $2,024.40 an ounce while West Texas Intermediate crude oil was up 72 cents at $41.94 per barrel.
U.S. Treasurys were slightly lower, pushing the yield on the 10-year note up by 1.1 basis points to 0.573 percent.
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European markets were higher across the board with France’s CAC gaining 0.41%, Britain’s FTSE advancing 0.31% and Germany’s DAX ticking up 0.1%.
In Asia, China’s Shanghai Composite rallied 0.75% while Hong Kong’s Hang Sang and Japan’s Nikkei fell 0.63% and 0.39%, respectively.