FOX News- U.S. equity markets fell on Friday with selling accelerating during the final hours of trading as investors took money off the table after a massive three-day rally in which the Dow Jones Industrial Average exited its bear market.
|I:DJI||DOW JONES AVERAGES||21636.78||-915.39||-4.06%|
|I:COMP||NASDAQ COMPOSITE INDEX||7502.377567||-295.16||-3.79%|
The Dow fell over 915 points or 4 percent. While the S&P 500 lost 3.37 percent and the Nasdaq Composite lost 3.79 percent.
For the week, the Dow gained 12.8 percent, the best week since June 1938l
Stocks did see a pop earlier in the session after the House of Representatives passed the $2 trillion relief bill that extends aid to individuals, small businesses and corporations hit hardest by the COVID-19 pandemic. The legislation now heads to President Trump for his signature of approval.
On Thursday, the Dow emerged from its bear market, capping off a three-day advance of 3,960.24 points, or 21.30%. It was the biggest 3-day percentage gain since 1931.
Looking at stocks, airlines were in focus after Treasury Secretary Steven Mnuchin said the government would take stakes in the companies in exchange for billions of dollars of aid extended through grants.
Shares fell across the board. Delta’s CEO told employees that pay will not be cut, nor will there be involuntary furloughs this year due to the stimulus actions.
|UAL||UNITED AIRLINES HLDG.||32.84||-2.71||-7.62%|
|AAL||AMERICAN AIRLINES GROUP INC.||14.04||-1.62||-10.34%|
|DAL||DELTA AIR LINES INC.||29.55||-2.15||-6.78%|
|LUV||SOUTHWEST AIRLINES CO.||36.38||-4.85||-11.76%|
Meanwhile, cruise operators, which are not domiciled in the U.S. and won’t be receiving government assistance, were under significant pressure.
|RCL||ROYAL CARIBBEAN CRUISES||34.50||-6.11||-15.05%|
Electric-vehicle maker Tesla will be slashing about 75 percent of the workforce at its Nevada battery plant, according to a website posting by Storey County manager Austin Osborne.
On the earnings front, video-game retailer GameStop reported mixed fourth-quarter results and CEO George Sherman said the company was seeing “increased demand” for its products in the wake of COVID-19.
Apparel chain Lululemon reported better-than-expected quarterly results and a 20 percent surge in same-store sales. Lulu declined to give an outlook for fiscal year 2020 due to uncertainty caused by COVID-19.
|LULU||LULULEMON ATHLETICA INC.||188.84||-11.96||-5.96%|
Looking at commodities, gold slipped but ended the week 9.4 percent higher at $1,623.90 an ounce and West Texas Intermediate crude oil was down 5.8 percent at $21.30 a barrel and posted a weekly loss of 25.8 percent.
U.S. Treasurys gained, dropping the yield on the 10-year note by 6.7 basis points to 0.741 percent.
In Europe, Britain’s FTSE, down 5.3 percent, paced the decline after U.K. Prime Minister Boris Johnson tested positive for coronavirus and said he was experiencing mild symptoms. Elsewhere, France’s CAC and Germany’s DAX were lower by 4.2 percent and 3.7 percent, respectively.
Asian markets clawed their way higher, with Japan’s Nikkei gaining 3.88 percent, Hong Kong’s Hang Seng advancing 0.56 percent and China’s Shanghai Composite adding 0.26 percent. The gains came despite a historic drop in China’s industrial profits.