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Sunday, 20 June 2021

Stocks erase stellar gain to close lower

Duration: 02:01s 0 shares 1 views
Stocks erase stellar gain to close lower
Stocks erase stellar gain to close lower

The Dow gave up a more than 900-point rally to close the day lower in volatile trade.

Conway G.

Gittens has the numbers.

Wall Street gave up a huge rally Tuesday as investors questioned if market sentiment had swung too quickly from being pessimistic to optimistic.

The Dow gave up a 900-point rally to close with a loss.

The S&P 500 and the Nasdaq gave up all their gains as well.

Nick Colas of DataTrek Research says the jury is still out on whether the bear market low set in March was truly the bottom.

SOUNDBITE (ENGLISH): NICK COLAS, CO-FOUNDER, DATATREK RESEARCH, SAYING: "The history is extremely clear about how market bottoms occur, however, what may be different or at least helpful this time is policymakers were so aggressive right after the crisis hit - - both from a monetary and fiscal side and we're not waiting for months and months and months like we did in 2008 and 2009.

If you listen to bullish commentators they'll say 'we've had enough stimulus to cut off that usual pattern of having to find a low after the initial drop,' and that's the conversation markets are going to have now." And there may be more stimulus coming.

Treasury Secretary Steve Mnuchin tweeted that Congress and the White House are working on $250 billion in additional help for small businesses forced to close or layoff workers.

Individual stocks on the move: Exxon Mobil announced it will slash spending by 30 percent this year after business was hit by the double whammy of a plunge in oil prices and weak demand.

But the money-saving measures didn't include plans to cut the billions in dividends paid out to investors.

Exxon shares rallied 2 percent.

Oil prices tumbled on Tuesday after the U.S. Department of Energy hinted it would not adhere to any production cut agreement at a meeting later this week by OPEC and its allies.

Both Saudia Arabia and Russia said they would only agree to deep cuts to their output if the U.S. agreed to cut as well.

A price war in the midst of global glut in supplies has lead to a crash in global oil prices.


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