Wednesday’s Headlines: The Government Has A Bailout Plan 💵
1. Stocks surged Tuesday — rebounding from their worst day in more than three decades — as Wall Street cheered White House plans that could inject $1 trillion into the U.S. economy to cushion the blow of the coronavirus. The Dow Jones Industrial Average closed 1,048.79 points higher, or 5.2%, at 21,237.31, with S&P 500 and Nasdaq up more than 6%. Treasury yields also jumped, with the 10-year U.S. rate breaking back above 1% on news of the big stimulus plan. Read more here.
2. Shares in Amazon jumped 7% on Tuesday after the company announced plans to hire 100,000 warehouse and delivery workers in the United States to deal with a surge in online orders. With shoppers clearing out shelves (both physically and online) in fear of quarantines or product shortages, and online shopping surging due to people being in isolation, retailers are struggling to meet demand. Amazon is turning to people recently let go from affected sectors such as travel and hospitality, stating: "We want those people to know we welcome them on our teams until things return to normal and their past employer is able to bring them back." Get the full story here.
3. An unexpected beneficiary of the ongoing trend of isolation is alcohol maker Brown Forman, which jumped 14% on Tuesday. The jump came after analysts lowered EPS estimates for full-year 2020 to $1.75, and upgraded the stock from a ‘sell’ rating to ‘hold’. According to analyst Garrett Nelson: “While sales to restaurants are likely to suffer, we think stay-at-home trends bode positively for alcohol consumption trends”. Having just spent St. Patrick’s Day in isolation with just a six-pack of Guinness to keep me company, I am fully behind this hypothesis. Read the complete report here.