Send me real-time posts from this site at my email

Stock Market News for Jun 22, 2020

Wall Street closed mostly lower after a volatile trading session on Friday. The news of a spike in new coronavirus cases in some states in the country dented investors' confidence. Market participants remained skeptical about quicker-than expected recovery of the U.S. economy. The Dow and the S&P 500 ended in red while the Nasdaq Composite managed to gain marginally.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) was down 0.8% to close at 25,871.46. Notably, 22 components of the 30-stock blue-chip index ended in the red while 8 closed in green. The index lost value for last 3 days. Meanwhile, the tech-heavy Nasdaq Composite finished at 9,946.12, adding 3.07 points and marking its seven straight winning streak.

The S&P 500 fell 0.6% to end at 3,097.74. The Utilities Select Sector SPDR (XLU), the Energy Select Sector SPDR (XLE) and the Industrials Select Sector SPDR (XLI) dropped 2.8%, 1.5% and 1.2%, respectively. Notably, ten out of eleven sectors of the benchmark index closed in negative territory while one finished in green.

The fear-gauge CBOE Volatility Index (VIX) surged 6.6% to 35.12. A total of 15.84 billion shares were traded on Friday, higher than the last 20-session average of 13.17 billion. Decliners outnumbered advancers on the NYSE by a 1.66-to-1 ratio. On Nasdaq, a 1.15-to-1 ratio favored declining issues.

Resurgence of Coronavirus Infections

Investors remained highly concerned about the second wave of coronavirus cases which will significantly delay the just started reopening process of the U.S. economy. Meanwhile, at least six states recorded a spike in COVID-19 cases in last week.

The World Health Organization has warned that coronavirus pandemic is "accelerating" and "the world is in a new and dangerous phase." In The United States, Arizona, Florida and California reported record spikes in confirmed Covid-19 cases in last week.

Extension of Suspension of Cruise Operations in the U.S.

Cruise Lines International Association (CLIA), the largest association of this industry, extended a voluntary suspension of operations from U.S. ports until Sep 15 instead of Jul 24 decided earlier. The industry body cited a second wave of the coronavirus infections in the country as the reason for this decision. Per CLIA, "It is increasingly clear that more time will be needed to resolve barriers to resumption in the United States."

Consequently, share price of major cruise line like Royal Caribbean Cruises Ltd. RCL, Norwegian Cruise Line Holdings Ltd. NCLH and Carnival Corporation & Plc CCL tumbled 6.9%, 5.6% and 5.3%, respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Economic Data

The U.S. current account deficit declined marginally in the first-quarter 2020 to $104.2 billion from a revised $104.3 billion in fourth-quarter 2019 owing to a lower trade deficit in goods.

Weekly Roundup

Wall Street rebounded in the week ended Jun 19, after facing a rout in the previous week. The three major stock indexes - the Dow, the S&P 500 and the Nasdaq Composite - gained 1%, 1.9% and 3.7%, respectively. Gradual reopening of the U.S. economy and better-than-expected economic data boosted investors' confidence to some extent.

Zacks Top 10 Stocks for 2020

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?

Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.

Access Zacks Top 10 Stocks for 2020 today >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Carnival Corporation (CCL): Free Stock Analysis Report
Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report
Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue