Wall Street Rises On Trump's Stimulus: ETF & Stock Gainers
Zacks Investment Research | Mar 11, 2020 08:00AM ET
After Fed’s massive emergency monetary stimulus, President Trump came up with a fiscal stimulus package. Trump is now mulling over a “$8.3-billion spending package signed by President Trump last week.The package was intended to back research on vaccines as well as support states struggling with the outbreak.
Trump also mentioned that the White House will cooperate with the struggling airline and cruise industries. In response, cruise shares Carnival Corporation (NYSE:CCL) (up 10.5%) and Royal Caribbean Cruises Ltd. (NYSE:RCL) (up 7.0%) gained materially on Mar 9.
Notably, global airlines are likely to 4 Sector ETF Winners of Bull Market Look Resilient to Virus ).
Trump’s aid announcement boosted the Dow Jones, the Nasdaq Composite and the S&P 500 by 4.89%, 4.95% and 4.94%, respectively on Mar 10. However, such policy measures are less likely to boost markets as the latest crisis is supply shock-driven and people are less likely to step outside even if they have plenty of cash.
ETF Gainers
iShares U.S. Regional Banks ETF (LON:IAT) – Up 7.24% on Mar 10
Chances of fiscal stimulus boosted the long-term U.S. treasury bond yields, resulting in a steepening yield curve. This proved beneficial for bank stocks. Moreover, investors should note that bank stocks have cheaper valuation at the current level and offer a good entry point (read: Why Bank ETFs Are Rising ).
U.S. Global Jets ETF (KL:JETS) – Up 6.16% on Mar 10
U.S. airline stocks have risen on Mar 10 backed by stimulus hopes as well as industry-wide restructuring. United Airlines (NASDAQ:UAL) (up 12.36% on Mar 10), Delta (NYSE:DAL) (up 4.48%) and American Airlines (NASDAQ:AAL) (up 15.25%) have plans of year and a half .
VanEck Vectors Semiconductor ETF SMH – Up 6.16% on Mar 10
Semiconductor stocks have affected by coronavirus-related selloffs and thus had an easy chance to surge once markets rebounded. Plus, there were deals related good news in the semiconductor sector (read: Buy These ETFs as Nvidia Returns to Revenue Growth ).
Stock Winners
Aytu BioScience Inc. (NASDAQ:AYTU) – Up 489.1% on Mar 10
The pharmaceutical company rallied on its announcement of the signing of an exclusive distribution agreement for commercializing a clinically validated and commercially-used coronavirus 2019 (COVID-19) IgG/IgM Rapid Test.
Get The News You Want
Enable Midstream Partners LP (NYSE:ENBL) – Up 154.3% on Mar 10
Oil prices bounced back on Mar 10 after a historic selloff the day before. There was a volley of announcements regarding capex cuts. The news boosted the mid-stream space. Investors should note that $20/$30 oil for long might cause bankruptcies for drillers. This in turn might lead them to miss out on payments to midstream companies for carrying oil. If this happens, midstream companies may have to bring down their high dividend payouts , per an article published on Motley Fool.
Cypress Semiconductor Corporation (NASDAQ:CY) – Up 48.9% on Mar 10
Cypressshares surged on receipt ofa key approval in its proposed acquisition by Germany-based Infineon.
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