- Stocks were higher Tuesday following the worst day on Wall Street since the financial crisis.
- Coronavirus update: The number of confirmed global cases of the coronavirus has risen to 117,723, according to the Johns Hopkins CSSE, and deaths increased to 4,258. The U.S. has 793 cases of the virus and deaths have climbed to 27.
- Coca-Cola is Real Money’s Stock of the Day. Jim Cramer told his “Mad Money’ audience on Monday that Coke was the prefect defensive stock and is a “buy, plain and simple.”
Stocks rose Tuesday following the worst day on Wall Street since the financial crisis.
The Dow Jones Industrial Average was up 540 points, or 2.26%, to 24,391, the S&P 500 gained 2.36% and the Nasdaq rose 2.45%.
Stocks had risen even more earlier in the session – the Dow at one point had gained 945 points – after Donald Trump said his administration would be meeting with House Republicans Tuesday to discuss a “substantial” payroll tax cut, and “getting help” for hourly workers. He also said he would be working with companies on an economic relief plan in the face of spreading worries about the coronavirus Covid-19 outbreak.
A report from Bloomberg, however, said the timing of stimulus from the administration to combat the coronavirus crisis remained uncertain.
“While we believe that a fiscal stimulus package will be produced, the timing and scope remain uncertain,” said Ed Mills, an analyst with Raymond James. “When asked about the potential for a fiscal package, some Republican leaders on the Hill signaled that they believe these actions to be premature and key Congressional Democrats arguing that there are more immediate priorities over tax cuts and plan to introduce their own package in coming days.”
Stocks tanked Monday, global stocks sank and bond yields declined sharply as investors’ fears about the spread of the coronavirus deepened and oil prices plunged as producers argued over how to cut production and lift prices in the face of weaker demand.
The Dow had its worst day since December 2008 – falling 2,103 points or 7.78% – and stocks closed Monday near bear-market territory, or 20% off recent highs.
Oil prices recovered some of their losses Tuesday after a record-setting tumble of 25% on Monday despite Saudi Arabia pledging to substantially increase its daily crude output in an escalation of its price war with Russia.
Shares of Delta Air Lines (DAL) – Get Report and American Airlines (AAL) – Get Report were rising Tuesday after saying they would cut capacity as demand for air travel is crimped significantly by the coronavirus outbreak. The carriers also pulled their guidance for 2020.
The number of confirmed global cases of the coronavirus has risen to 117,723, according to the Johns Hopkins Center for Systems Science and Engineering, and deaths were at 4,258.
The U.S. has 793 cases of the virus and deaths have climbed to 27.
Join Jim Cramer’s special Action Alerts PLUS members-only call to prepare your investment strategy during the economic fallout from the coronavirus and as oil prices fall amid a price war.