All eyes are on Congress to pass a much-needed stimulus bill to rescue the economy from the coronavirus damage. The stock market is staging a turnaround with the Dow rebounding from its 2016 low.Â Here’s what’s happening:
The Cboe Volatility Index (VIX) â Wall Street’s preferred fear gauge â dropped more than 3 points, or 6.4%, to 57.63. The VIX eclipsed its financial crisis high last week, closing at 82.69. To be sure, the index is still high relative to other periods in history and still suggests sharp moves may be in store for stocks. âImbert
Around midday, the Dow Jones Industrial Average was up more than 8%, or roughly 1,500 as investors cheered increasing prospects of U.S. lawmakers moving forward with a coronavirus economic stimulus bill. House Speaker Nancy Pelosi told CNBC’s Jim Cramer there is “real optimism” in Congress over a stimulus deal being reached. âImbert
Shares of Royal Caribbean, Carnival, and Norwegian Cruise Line each jumped 27%, 21% and 32% respectively. Investors in cruise stocks were hopeful that a U.S. stimulus package, which Congress hopes to agree to on Tuesday, will include bailouts for the industry that has been hit hard by the coronavirus crisis. – Sheetz
Analysts upgraded a bunch of stocks as markets look for a rebound, including Nvidia, Tesla, Zillow & more
- Needham upgraded Nvidia to buy from hold.
- Morgan Stanley upgraded Virgin Galactic to overweight from equal weight.
- DA Davidson upgraded Zillow to buy from neutral.
- Wedbush upgraded Deckers to outperform from neutral.
- UBS upgraded Tesla to neutral from sell.
- UBS downgraded Ford to neutral from buy.
- Raymond James upgraded Cigna to strong buy from outperform.
- Goldman Sachs upgraded Intel to neutral from sell.
- Telsey upgraded Dollar Tree to outperform from market perform.
- Argus downgraded Tesla to hold from buy.
- Bernstein upgraded Spotify to market perform from underperform.
CNBC Pro subscribers can read more here.Â â Bloom