Stocks Turn Negative, Dow Falls 100 Points As Reopening Of The Economy Continues

TOPLINE

The market opened slightly higher on Tuesday but later turned negative as Wall Street continues to assess the risks of reopening the economy, with some states lifting coronavirus lockdown orders.

KEY FACTS

Key background

Stocks have been rising in recent weeks, despite coronavirus headwinds, as Wall Street becomes more optimistic about a reopening of the economy and some states allow businesses to reopen.

Crucial quote

“It’s certainly encouraging that business conditions appeared to have troughed in early April,” says Adam Crisafulli, founder of Vital Knowledge. But the declines compared to last year “remain enormous, and it will be some time before trends return to precrisis levels.”

What to watch for

“It’s been a rough year for the banks,” according to Bespoke Investment Group. “Despite coming into this crisis much better capitalized than they were during the last, the sector still hasn’t been able to avoid the pain.” Banks are down about 40% so far in 2020, which is worse than any other industry group in the S&P 500, the firm’s data shows.

Tangent

Boeing CEO Dave Calhoun said in an interview with NBC on Tuesday that he doesn’t expect air travel to return to normal in 2020 and warned that a major airline might go out of business later this year.

Further reading

Why A Private Equity Firm Backed By Bernard Arnault Is Putting $400 Million Into Norwegian Cruise Line
NCLH
(Forbes)

Stocks Rally, Dow Rises Over 400 Points Despite Record Job Losses (Forbes)

Stocks Had Their Best Month In 33 Years, But Here’s Why Experts Are Skeptical (Forbes)

The U.S. Economy Will Beat Coronavirus, Buffett Says: ‘Never Bet Against America’ (Forbes)

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