Stock market live updates: Dow futures up 600, Fed goes all-in, waiting on Congress

Shares of Coca-Cola gained 3.7% in premarket trading after the beverage company was upgraded from neutral to overweight by JPMorgan. The bank did cut its price target on the stock from $60 to $44 per share, about 15% above where trading closed on Friday. The bank said in a note that it expects Coca-Cola’s sales to decline by 7.8% in the second quarter but “valuation ignores potential comeback.” — Pound

Stocks reversed course after the Federal Reserve’s announcement Monday. The Dow Jones Industrial Average futures surged 550 points. The S&P 500 and the Nasdaq also pointed to gains at the open. —Fitzgerald 

The Federal Reserve said Monday it will launch a barrage of programs aimed at helping markets function more efficiently in the wake of the coronavirus crisis. Among the initiatives is a commitment to continue its asset purchasing program “in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.” Others include a $300 billion lending program for Main Street businesses and the Term Asset-Backed Loan Facility implemented during the financial crisis. The Fed also said it will purchase commercial mortgage-backed securities as part of an expansion in its asset purchases, known in the market as quantitative easing. Stock futures cut their losses after the Fed’s announcement.– Cox

A funding package to combat the economic impact of coronavirus did not get enough votes in a key Senate procedural vote Sunday evening, after Democratic leaders warned that the bill did too much to bail out companies and not enough to help workers. The final vote tally was 47-47, well short of the 60 votes needed to advance the bill. Republicans hold a 53-47 majority in the chamber, although several GOP senators were not present to vote due to coronavirus isolation.

House Speaker Nancy Pelosi said the Democrats would be introducing their own bill. President Trump expressed optimism that lawmakers would eventually reach a deal.

Aperture Investors founder and CEO Peter Kraus said on CNBC’s “Squawk Box” on Monday that he recalls the Senate didn’t pass the first TARP bill during the financial crisis, and the market fell. “There are going to be 2 million to 3 million Americans out of work. I think there are both Republicans and Democrats in that crowd. We need to pass a bill,” said Kraus. – Fitzgerald

The Cboe Volatility Index rose about 6 points on Monday morning to break back above 70. The index, which measures the volatility implied by S&P 500 options trading, set record highs last week but closed on Friday at 66.04. — Pound


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