Dow Plummets as Stimulus Bill Fails Twice

All three indexes tagged three-year lows

by Jake Scott

Published on Mar 23, 2020 at 4:32 PM
Updated on Mar 23, 2020 at 7:38 PM

Stocks began the week deep in the red, as political gridlock drags down Wall Street. Despite the Federal Reserve deploying aggressive new measures to aid markets against the COVID-19 outbreak, the Dow dropped over 800 points at its session lows as the Senate failed twice to negotiate the terms of a massive stimulus package. The S&P 500 and Nasdaq followed the blue-chip index lower, with all three indexes tagging over three-year lows earlier in the day.

Continue reading for more on today's market, including:.

  • ZTO Express pulled back to a historic bullish trendline.
  • Netflix stock was upgraded to "outperform."
  • Plus, Boeing stock upgraded; the pessimists are out on this Verizon rival; and Apple rescinded their two-device limit.

The Dow Jones Industrial Average (DJI - 18,591.93) finished 582.1 points, or 3%, lower for the day. Boeing led the four gainers with a 11.6% win, while United Technologies (UTX) paced the 26 laggards with a 9.2% fall. 

The S&P 500 Index (SPX - 2,237.40) lost 67.5 points, or 2.9%, while the Nasdaq Composite (IXIC - 6,860.67) shed 18.8 points, or .3%.

The Cboe Volatility Index (VIX - 61.59) lost 4.5 points, or 6.7%.

closing summary mar 23

nyse nasdaq mar 23

5 Items on Our Radar Today

  1. New York Gov. Andrew Cuomo ordered hospitals in the state to increase their capacity by at least 50%. In a briefing, Cuomo said: "Find more beds use more rooms, you must increase your capacity [by] 50%." (MarketWatch)
  2. With California, New York and Illinois ordering the closure of non-essential business, it seems likely the rest of the country will follow suit soon. This has led to the debate over what constitutes an "essential business." (USA Today)
  3. Goldman Sachs tossed an upgrade struggling Boeing stock.
  4. Why analysts are pessimistic on AT&T stock.
  5. Apple removed a two-device limit.

There are no earnings of note to report today.

unusual options mar 23

Oil and Gold Both Turn in Wins

Oil had a surprising gain today amid hopes that Congress is close to a deal on a massive stimulus bill that will help combat the slowdown caused by COVID-19. April-dated crude rose a modest 73 cents, or 3.2%, to settle at $23.36 per barrel.

Gold futures gained $83 or 5.6%, to settle at $1,567.60 per ounce.The surge for the precious metal comes after the Fed took aggressive steps to combat the impact felt by the coronavirus pandemic. It was gold's largest dollar gain ever, and biggest percentage rise since May 2009.

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