Stocks jump on stimulus bill hopes, President Trump’s reopening signal

After President Donald Trump on Tuesday signaled he was eager to reopen the economy and amid hopes that U.S. lawmakers were close to an agreement on a stimulus bill to rescue the economy from the COVID-19 coronavirus, stocks jumped in early trading.

The Dow Jones Industrial Average traded more than 1,000 points higher, or 5.9%. The S&P 500 gained 5.2% while the Nasdaq Composite advanced 5.1%.

Stocks jump on stimulusCNBC:

Senator Chuck Schumer and Treasury Secretary Steven Mnuchin said they hope to have a deal by Tuesday morning. “There are still a few little differences. Neither of us think they are in any way going to get in the way of a final agreement,” Schumer said.

“From a market perspective … it feels like we’re coming to the end of it,” said Michael Novogratz, CEO of Galaxy Digital, on CNBC’s “Squawk Box.” Novogratz started buying into this market on Monday, he said. “It doesn’t necessarily mean the market’s going to go up, but a lot of that crazy volatility is kind of coming out.”

Tuesday’s gains also came as President Donald Trump signaled he was eager to reopen the economy, despite concerns of public health officials. “At some point we’re going to open up our country, and it will be fairly soon,” Trump said during an evening press briefing on the fast-spreading virus.

Markets are getting support from the Federal Reserve, which said Monday it would embark on an open-ended asset purchase program. The central bank said the program will run in the “amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.”

“This market has been utterly dangerous since February,” wrote Fundstrat’s Tom Lee in a note Tuesday. “But there are glimmers of hope.”

MacDailyNews Take: As stocks jump on stimulus hopes, Apple shares surged along with them in early trading and the company’s market cap is again north of $1 trillion.

65 Comments

  1. The US has five times the population of the UK, and ten times the confirmed Covid-19 cases (despite the lack of testing).

    The UK has just ramped up its social distancing rules. You can go outside once a day to exercise and the police can disperse any gathering of more than two people.

    The US is considering a relaxation of its rules as early as next week. This is being driven by pro-management economics against medical advice.

    That hardly seems grounds for confidence in a rapid recovery.

    1. Destroying the entire economy for the 99+% of people who’ll get the virus, fight it off, and be immune within days is pure stupidity and overreaction. We won’t be just sending everyone back to work, business as usual – there will clearly be guidelines to follow.

      I know you’d like to destroy the economy to get rid of Trump because he doesn’t soothe you with smooth, scripted politician-speak and you consider blunt honesty to be a disqualifier for the presidency (you’d rather have a fool like Obama who “sounds good” to you than a president who actually accomplishes things) and also because a destroyed economy makes otherwise thinking people ripe for your wet dream of a “democratic socialist” utopia based on centralized government control.

      A destroyed economy for the 99+% of people who get the virus, fight it off, and be immune within days will make the people more amenable to all sorts of government control and dependency, loss of rights, nationalization of health care, etc.

      We all know what you and your ilk want. Why don’t you just come out and finally say it for once. Still too scared?

      1. Excuse me but this is not a partisan issue. TxUser didn’t mention the word “Trump” once on his/her post. These facts are absolute… the US will become the epicenter of confirmed cases worldwide and it’s well on its way to having the most deaths… with no cure in sight. The world is so interconnected that even if you inject every tax payer dollar into “saving the economy” how are you going to receive shipments from countries that aren’t willing/can’t ship anything? That’s just one of many examples on how this situation is far more complicated than it seems. Revamping local production is a great initiative but how fast can the US make it happen? China controlled the outbreak because they have the world’s largest population of doctors, engineers, steady production supply of virtually everything and, even though I’m not a fan, a leaner government. It’s a fair point about the economy but are short term gains really more important than saving human lives? Self-isolate while you can.

      2. This is NOT about trying to get rid of President Trump. It IS about the appropriate course of action for the American people. It is NOT about your pocketbook.

        Due to the initial lack of the ability to test for the virus, the U.S. is just now STARTING to get a handle on the number of cases in the population. If you look at that actual numbers, the number of reported, verified cases is actually accelerating across the U.S. This is partly due to the fact that there is more testing now, but it is also due to the fact that people not knowing they were infected moving freely about and infecting others. To say otherwise is just lying. Period.

        To say, “A destroyed economy for the 99+% of people who get the virus, fight it off, and be immune within days…” is just not paying attention to reality. It can take up to 10 days for an infected person to show symptoms. It can take 14 days or more (some validated cases have taken 21+ days) to get through the symptoms before the person is considered “well”. Thus it can take a month or more before a person “get[s] the virus, fight[s] it off, and [is] immune”. Additionally, there are multiple reports of people getting the virus and having symptoms again after they have already gone through it and declared “well”.

        Even the most ludicrous proposals (and there have been several) for inclusion in relief legislation do not approach any of the “loss of rights” or “nationalization of health care” you mention. To push that lunacy it truly irresponsible.

        1. This isn’t about anyone’s “pocketbook” getting dinged.

          You might want to read up on The Great Depression. Democrat social programs didn’t end the suffering, misery, starvation, and widespread death, a World War did.

          Destroying the entire economy for the 99+% of people who get the virus, fight it off, and are immune within days is pure stupidity and overreaction and invites inevitable war.

          1. As always, you are entitled to your own opinion, but not to your own facts. There is simply no evidence that “99%+ of people, etc.”

            In Italy, about 9% of confirmed cases lead to death. At best, the mortality rate is 1% (in the US, that would be 3 million people if everyone gets the virus). At best, 20% become ill enough to require hospitalization. We do not have anywhere near 60 million available beds (probably not even 600,000). Those patients might be “immune within days,” but they won’t be participating in the economy as either workers or consumers (apart from medical services) for weeks or months.

            It is not just the right moral and medical choice to maintain distancing in order to “flatten the curve,” but also the safest for the economy.

            1. Case fatality rates from SARS-CoV-2 are well under 1 percent in the U.S. where, despite the best efforts of Democrats, the health system remains unparalleled. Hundreds of thousands, likely millions, of people worldwide have already had and recovered from the viral infection. They have not been tested or counted. It’s very simple math. Even you could maybe do it if only you took a few seconds break from your endless attempt to impune everything America does that isn’t steeped in authoritarian anti-capitalism.

            2. US as a whole—16% over 65. Italy—23%. Not exactly enough to drop 9% mortality to less than 1%.

              There is, by definition, no way to know how many cases have been undiagnosed, so speculating that 90% of the Italians, Chinese, etc who caught the virus remained undiagnosed is… speculation.

            3. Did you forget to add the percent of obesity, heart disease, diabetes and high blood pressure in Italy vs America? Age is only ONE of the high risk variables.
              No, because you are the FOX of commenters here.

            4. @ no name

              Did you forget to factor in Hug a Chinese nonsense the libs pushed?
              Their slow response to travel?

              Yeah, they aren’t America so they must be doing everything right…

            5. A study in Science last week estimated that 86% of all SARS-CoV2 infections were undocumented in the early stages of China’s epidemic, before the travel restrictions that the government imposed on January 23.

              In other words, the actual number of infections was roughly 6X as high as the official number. If that holds true at this point in the United States, where about 45,000 cases have been confirmed so far, the actual number of infections right now would be nearly 270,000. The actual case fatality rate for COVID-19 would be 0.2 percent.

          1. Towertone: why do you care? Shouldn’t you rise above those small minded folk and stand behind principles, doing what is best for the country as a whole? Is Donald the best man you have on the Red team? Seriously?

        2. Which is why it is here to stay, unless you have another planet we can all go to. (that planet would also have it’s own Coronavirus there is no long term escape).

      3. How many deaths would you consider an acceptable number in order to “save” the economy? A million, ten million, a hundred million? Apparently it has not occurred to you that shrinking the population significantly would have a negative effect on the economy. This whole notion that we should accept a certain number of preventable deaths to “save” the economy is frightening.

          1. Yes, it’s terrifying how obtuse some people are. WARNING: I’m going to use logic here, and I know you teary-eyed bleeding heart libs are immune to logic, but here goes:

            There will be 23,000 – 59,000 deaths from influenza this 2019-2020 flu season (CDC).

            This whole notion that we should accept a certain number of preventable deaths to “save” the economy is not frightening. We do it every single day. We could shut down the country and greatly cut influenza deaths. Yet, we do not consign everyone to starvation in order to prevent tens of thousands of “preventable” flu deaths every single year. We live our lives.

            How many deaths would you consider an acceptable number in order to “save” the economy? Well, this year it’ll be 23,000 – 59,000 deaths for the flu alone.

            CAUTION: Similar use of logic ahead:

            Nearly 1.25 million people die in vehicle crashes globally each year, on average 3,287 deaths a day. An additional 20-50 million are injured or disabled. (ASIRT)

            This whole notion that we should accept a certain number of preventable deaths to “save” the economy is not frightening. We do it every single day. We could ban motorized vehicles and greatly cut accidental deaths/disabilities. Yet, we do not consign everyone to horse-drawn buggies in order to prevent 1.25 million “preventable” vehicle crash deaths every single year. We live our lives.

            How many deaths would you consider an acceptable number in order to “save” the economy? Well, this year it’ll be 1.25 million deaths for vehicles alone.

            Shall I continue or do you just want to keep crying into your hot cocoa, pajama boy?

            1. What’s “evil” about simple logic? Or are you proposing we lockdown forever in order to reduce annual flu deaths? For greater impact, perhaps you’d like to ban all motorized vehicles to end vehicle deaths?

              Following that, we could ban building anything over 2 feet tall to stop deaths from falls. Let’s also limit hydration to only intravenous means as we all know you can drown in a teaspoon of liquid.

            2. @ applecynic: evil all right. smart, not at all. just another political hack posting spin for his corrupt boss. divided we fall.

              the usa had a good run. now it’s clear that the crumbling infrastructure isn’t a shining city on a hill anymore. in the screwed up bipolar political system, the most corrupt party has found a way to erase any sense of decency or concern for the people. first whatever is a brainless pawn pushing the propaganda to keep the corrupt swamp deep and slimy, while telling everyone the opposite.

        1. This bears repeating, especially to knee-jerk Libs who only “feel,” but never stop to think:

          There are four endemic coronavirus strains currently circulating in human populations (229E, HKU1, NL63, OC43). If the novel coronavirus follows the pattern of 2009 H1N1 pandemic influenza, it will also spread globally and become a fifth endemic coronavirus within the human population. Treatments have already been and will continue to be developed as the work on a vaccine continues.

          The real problem: Too many zombie movies plus too few intelligent people. See mirror.

          1. You are an absolute fool. People don’t simply become “immune” after recovering from this, they have PERMANENT lung damage! And there are cases showing up where people are coming down with it again! There is absolutely NO INSANITY that you republicans won’t support if trump spews it. And I’m sorry if you don’t give a shit about people dying, but I don’t want to lose my parents or anyone I care about because some git like you thinks the economy will magically get better if we just go about our business and ignore reality.

            1. You fall to show the same passion for the flu or vehicle accidents. You lived your life as influenza and motorized vehicles took hundreds of thousands of people’s parents and loved ones every year.

              The fact is that you didn’t give a shit about people dying from the flu or vehicle crashes. You didn’t shut down entire countries, hoard toilet paper, and bathe in Lysol. You didn’t call for banning motorized vehicles. You lived your life while people’s parents died and continue to die and will continue to die from the flu and vehicle crashes each and every year.

              You just went about your business and continued to ignore reality and you’ll continue to go about your business and continue to ignore reality because you’re an illogical TDS-addled cretin.

      4. Your seasonal flu and car accident analogy doesn’t hold up. Nobody wants the flu, an accident or corona virus. Do we not take precautions against the flu and accidents? Do you wash your hands, wear a seat belt, get the flu shot, take extra care of grandma when she is sick, obey traffic laws? Yes, we live with accidents and the flu – and we modify our behavior to do so. Wuhan virus is MORE contagious than seasonal flu. HIGHER mortality rate than seasonal flu. It is spread silently by those without symptoms. Do we not take precautions to avoid mass simultaneous infections? Do we not modify our lifestyle to “flatten the curve” so that your wife (or husband) or child can receive treatment when needed? We have vaccines to minimize the impact of seasonal flu. We have steps in place to minimize accidents (license required, minimum age limit for drivers, safety equipment, traffic laws and doctors who can – hopefully – fix us when we break). What steps do we have in place when your loved one becomes infected with Wuhan virus (millions of us – here to stay, live with it – you say)? Just drive around without a seatbelt on with your eyes closed. That endangers yourself and others.

    2. TxAbUser you never fail to bitch about anything America does.
      Why don’t you complain about what Nancy is doing?

      No, just another fatalist where a realist is needed.

        1. I say just let the weak die off. Starting with the dumb kids that held coronavirus parties in KY and the lameass trumptards that took over MDN. Don did get caught with his pants down, admit it. Hospitals coast to coast are slammed.

    3. We are in a situ where you lose if you do and lose if you don’t. The Fed and Treasury are performing beyond Olympic-level financial tricks and their efforts ONLY band-aid the mess that existed BEFORE the V. Add the unemployment, corporate/bank defaults and medical system challenges that aren’t even here yet. How can anyone speak with confidence?

      Recovery is a two-tipped sword (med & financial) and one “stabs” the other…depending on the where the focus of “safety/security” is placed on the two-part scale.

      How anyone can speak with the confidence with which you do, is absolutely befuddling. You are obviously a health professional and a top notch financial guru experienced in realities never before seen.

      1. Ahh, he’s taking another long awaited, but brief break from his life’s effort; the “I Hate Trump” Facebook page.

        How you do it, the Auraman…maintaining the page and then visit here with your pithy commentary, is simply supernatural. You’ve done it again, maybe, or maybe not, with the accusal of The Donald, of murder. That’s just fantastic, or maybe I should say, fantastical.

        Whatever, leave it to you to give the last punch…kind of like the last one, making a suggestion–supporting your hate-energy of the Donald–that physical violence might be a good next step.

        Whew…it’s nap-time for me with all this good info.

    4. Keep up the good fight Tx and all the others here who have struggled to raise the conversation above the general morass of denial and misinformation.
      RIP one of my oldest friends, struck down by the Coronavirus, died within 48 hours. This is now too close to home.
      I am social distancing myself from MDN which has become a reactionary sewer. I cannot support a site where folks are allowed to spread misinformation from a few vocal protagonists in clear breach of common sense and decency. The lack of respect for the victims and the casual disregard for the prospect of perhaps millions dying as a price worth paying.
      I do not need any more futile arguments, ad hominems, invective and indefensible nonsense paraded as fact.
      I’ve always preferred to show folk it’s not necessary to learn ‘the hard way’, but I fear for some here that is exactly what they need.
      Adieu.
      @MDN thanks for many great belly laughs over the years and your staunch support for Apple. Recently? I think you’ve lost the plot.

      1. Gotcha,

        I’ll miss you. The “usual suspects” will write it up as a victory, just one more step towards suppressing any criticism of the Dear Leader.

        My condolences on the death of your friend. As a man of a certain age, I expect losses as well. I won’t even be able to attend their funerals, since the law here limits attendance to ten (including the minister but not the honoree). That’s a good thing, actually, as it will prevent crowded churches on Easter.

        May the wind always be at your back.

  2. Cases doubling every three days in NY. Where is this headed? You do the math. That means 50,000 by this weekend and 100,000 by next Tuesday. 1% mortality rate. Cases doubling again in three days. 200,000 cases in NY within two weeks. I’d love for Trump to relax restrictions. Hmm… he should wait to see what progress the American people make in slowing this beast down before relaxing anything.

    1. “Cases doubling every three days in NY. Where is this headed?”

      Panic @ 200,000 cases with a mass exodus to supposed safer states. And the # of cases accelerate in other states

  3. Trump and Pence (and all Republicans for that matter) should self-infect themselves to show the rest of us that there is nothing to be afraid of. It would show true leadership! Patriotism! They would be remembered and memorialized for decades to come!

    1. So many uneducated fools.

      There are four endemic coronavirus strains currently circulating in human populations (229E, HKU1, NL63, OC43). If the novel coronavirus follows the pattern of 2009 H1N1 pandemic influenza, it will also spread globally and become a fifth endemic coronavirus within the human population. Treatments have already been and will continue to be developed as the work on a vaccine continues.

      The real problem: Too many zombie movies plus too few intelligent people.

    2. Here in Texas, our Lieutenant Governor Dan Patrick said that he and other older Americans should be happy to die if that’s necessary to avoid impeding business.

        1. I saw it once. Why subject myself to it again? Obviously, we need to apply reason, but this guy is not just suggesting but outright saying that people my age had better die and get out of the way so millennials can enter the gig economy and play on the beach.

          1. He didn’t say anything like that you deaf, ignorant fool.
            No wonder you get so much wrong.

            How about this, you and the rest of the most likely to have serious issues (like my type 1 diabetic wife and my retirement home Mother) keep yourself quarantined after the mandatory month or two when the rest of us go back to work?

            THAT too much for you to bite off and chew???
            Because that’s what he said.
            Take your liberal “I hate Republican” blinders off and think about what is going on.

          1. Let’s ask CREEPY UNCLE JOE DEMENTIA!

            1. Poor bastard. His wife and Dem handlers (soulless leeches) should be charged with elder abuse.

  4. I call upon MDN to anchor this article and comments to the top of the site for the next 3 to 6 months, so that all of us (especially head-in-the-sand deniers of reality and science), can revisit it to see how things have gone between now and then… and to see if anyone has wised up enough to realize and admit how utterly wrong they were (are).

    Personally, from what I’ve read here, I doubt we’ll see few, if any, such admissions.

    I’ll leave you with this. Make of it what you will.

    John D. Rockefeller was once asked what would be the one thing he would keep if he had to give up everything else.

    He replied, “My people.”

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.