Updated: Oct 7, 2020
The Dow rallied on Wednesday as value stocks like consumer discretionary and industrials caught a bid on renewed hopes for stimulus after President Donald Trump said he was in favor of targeted coronavirus aid. The Dow Jones Industrial Average rose 1.91%, or 530 points. The S&P 500 was up 1.67%, while the Nasdaq Composite added 1.88%.
President Trump said he was ready to sign off on piecemeal measures, including support for individuals, small businesses and airlines. Delta Air Line (NYSE:DAL) rose more than 3%, while American Airlines (NASDAQ:AAL) and United Airlines Holdings (NASDAQ:UAL) ended up more than 4%. The call for targeted stimulus comes a day after Trump halted the talks and claimed U.S. House Speaker Nancy Pelosi was negotiating in bad faith. Tech, meanwhile, pared its losses from a day earlier, despite coming under increased scrutiny after Congress released a report condemning big tech's monopoly power and called for a break up. Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) Alphabet (NASDAQ:GOOGL) Amazon.com (NASDAQ:AMZN) and Facebook (NASDAQ:FB), which together make up a quarter weighting of the S&P 500, ending higher. Netflix (NASDAQ:NFLX), meanwhile, closed 6% higher after Pivotal Research upgraded its price target on the stock to $650 from $600, citing a ramp-up in cord-cutting trends. Elsewhere, Tesla (NASDAQ:TSLA) climbed 3% after CEO Elon Musk said the company had a shot at delivering 500,000 vehicles by year-end, Reuters reported, citing a company memo. Energy lagged the broader move higher, weighed down by falling oil prices on renewed demand concerns after data showed U.S. weekly crude supplies rose by more than expected. In earnings news, Levi Strauss (NYSE:LEVI) reported quarterly earnings of 8 cents per share, topping estimates for a loss of 22 cents per share, sending the stock more than 6% higher. On the health care front, Eli Lilly and Company (NYSE:LLY) jumped 4% after filing a Food and Drug Administration emergency use authorization for its experimental Covid-19 antibody therapy. The company said early results from a study of the antibody therapy suggested the drug reduced symptoms and hospitalizations for patients with mild or moderate Covid-19.
Dow Jumps 530 Points as Renewed Stimulus Hopes Boost Value Stocks