Stocks remained near session highs amid hopes for Senate approval on a $2 trillion coronavirus aid deal. The Dow Jones Industrial Average was up more than 1,600 points.

Stocks remained near session highs amid hopes for Senate approval on a $2 trillion coronavirus aid deal. The Dow Jones Industrial Average was up more than 1,600 points.

The Dow Jones industrials surged 8.8%, the S&P 500 soared 7.6% and the Nasdaq rose 6.3% in today’s trading. Small caps tracked by the Russell 2000 also gained 6.1%. Volume was tracking lower on the NYSE and Nasdaq, vs. the same time Monday.

The key indexes gapped up at the open on hopes a coronavirus stimulus bill will soon be passed. House Speaker Nancy Pelosi expressed optimism early Tuesday that Congress was getting close to a deal.

President Donald Trump tweeted: “Congress must approve the deal, without all of the nonsense, today. The longer it takes, the harder it will be to start up our economy. Our workers will be hurt!”

Confirmed coronavirus cases continued to surge both at home and abroad. In the U.S., they rose by more than 2,540 to 46,274, with 587 deaths, according to Worldometer data tracker. The global total is approaching 400,000, with 17,249 deaths, as Spain, Germany and Iran added well over 1,000 new cases each.

Coronavirus Delays 2020 Olympics

Meantime, the International Olympic Committee announced the 2020 Olympic Games in Tokyo will be postponed by up to a year.

Inside the Dow Jones index, Chevron (CVX) surged 16% in heavy volume. The oil giant said Tuesday it will cut 2020 capital spending by 20%, or $4 billion, and suspend share buybacks. But it will maintain its dividend, which it increased to $1.29 a share in January. Chevron stock last week skidded to its lowest level since May 2005.

Exxon Mobil (XOM), which is also looking at cuts in near-term capital and operating expenses, rallied 10% in twice normal trade. Last week, shares plunged to levels not seen since summer 2002.

Other blue-chip winners scoring double-digit gains included Boeing (BA), which soared more than 14% in fast turnover for a second straight advance. It rose 11% Monday, helped by a Goldman Sachs upgrade, but remains 69% off its 52-week high.

Disney (DIS) rebounded 13% in triple average trade. It’s now 36% below its high. The media and theme parks giant launched Disney+ in the U.K., Ireland, Germany, Italy, Spain, Austria and Switzerland with 25% lower bandwidth. The streaming service will launch in France on April 7.

Disney+ and other streaming services are temporarily reducing bandwidth as more people are forced to stay at home due to the Covid-19 pandemic, straining broadband networks.

Nike (NKE) leapt 12% in fast trade to recoup all of its Monday loss and then some. Shares remain about 33% off their 52-week high. The athletic-shoe powerhouse reports fiscal Q3 results after the close. Analysts expect earnings to fall 15% to 58 cents a share on $9.87 billion in revenue.

Nike recently shut down stores across the world, including in the U.S. and Canada, due to the global coronavirus outbreak.

Apple Gains Despite Sales Target Cuts

Apple gapped up and rose 7%, on track to halt a four-session slide. But shares remain 4% below the 200-day moving average and about 26% off their 52-week high. Piper Sandler and Oppenheimer cut their Apple sales forecast for the March and June quarters.

“Given the global uncertainty, we are reducing our estimates to account for the impact of the coronavirus on the company’s product revenue,” Piper Sandler said in a note. It remains positive long-term on Apple, ahead of the upcoming 5G iPhone upgrade cycle.

Piper reiterated an overweight rating on Apple stock, but cut the price target to 260 from 343. Oppenheimer maintained an outperform rating on Apple with a price target of 320.

Airlines, automakers and homebuilders led the upside among the 197 industry groups tracked by IBD. The only group slightly in the red was mortgage REITs, down 0.4%.

The Innovator IBD 50 ETF (FFTY) gapped up and rallied 7% in the stock market today, thanks to double-digit gains in more than a dozen stocks including MDC Holdings (MDC), Palomar Holdings (PLMR), SolarEdge Technologies (SEDG) and Nvidia (NVDA).

Author: Nancy Gondo

Source: Investors: Dow Jones Leads Big Market Rally Amid Hopes For $2 Trillion Coronavirus Aid Deal

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