Stocks soar as Bernie Sanders’ Super Tuesday dud boosts health care
What stocks should investors buy after tumultuous week?
T3 Trading Chief Strategist Scott Redler says traders should watch how stocks perform throughout the week before making decisions.
U.S. equity markets surged at Wednesday’s opening bell after former Vice President Joe Biden’s strong showing on Super Tuesday lifted health care stocks.
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The early gains have the major averages on track to win back a majority of the losses they suffered a day earlier despite the Federal Reserve's emergency rate cut to insulate the U.S. economy from the new coronavirus.
|I:DJI||DOW JONES AVERAGES||26628.1||+710.69||+2.74%|
|I:COMP||NASDAQ COMPOSITE INDEX||8836.499685||+152.41||+1.75%|
With votes still being counted, Biden had secured about 453 delegates on Super Tuesday, according to the Associated Press, capping a dramatic comeback after his campaign was left for dead following the Nevada caucus on Feb. 22. Meanwhile, Sen. Bernie Sanders, I-Vt., the self-declared democratic socialist and perceived frontrunner ahead of Tuesday night, had secured 382 delegates.
Health care stocks, led by the insurers, soared in response to Biden’s big night. The names had been badly beaten down, underperforming the S&P 500, as Sanders, who is an advocate of Medicare-for-all, climbed in the polls. UnitedHealth Group, which was up close to 10 percent, adds 6.78 points with every gain of $1.
|UNH||UNITEDHEALTH GROUP INCORPORATED||283.88||+22.48||+8.60%|
|CVS||CVS HEALTH CORPORATION||65.43||+2.89||+4.62%|
Airlines, cruise operators and online travel platforms, which have been under pressure amid the COVID-19 outbreak, won some relief while drugmakers working on treatments for COVID-19 were lower.
|AAL||AMERICAN AIRLINES GROUP INC.||17.38||-0.47||-2.66%|
|EXPE||EXPEDIA GROUP, INC.||94.30||-0.89||-0.94%|
On the earnings front, Campbell Soup reported earnings and sales that topped Wall Street estimates and raised its 2020 profit outlook.
Jack Daniels maker Brown-Forman lowered its guidance for sales growth due to an uncertain economic and geopolitical backdrop.
Abercrombie & Fitch’s quarterly same-store sales exceeded forecasts amid strong holiday demand at its flagship stores in the U.S.
|CPB||CAMPBELL SOUP CO.||50.83||+2.95||+6.16%|
|BF.B||BROWN FORMAN COMPANY||62.40||-1.41||-2.21%|
U.S. Treasurys gained, pushing the yield on the 10-year note down 2.3 basis points to 0.994 percent. The benchmark yield touched a record low 0.90 percent on Tuesday.
West Texas Intermediate crude oil rose 1.5 percent to $47.90 a barrel. OPEC and its allies will meet Thursday and Friday to discuss a production cut in the face of weaker demand due to the COVID-19 outbreak. Gold dipped 0.1 percent to $1,642 an ounce.
In Europe, Britain’s FTSE spiked 2 percent while Germany’s DAX and France’s CAC both rose 1.7 percent.
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Overnight, Asian markets finished mixed with China’s Shanghai Composite adding 0.6 percent and Japan’s Nikkei edging up 0.1 percent. Hong Kong’s Hang Seng slid 0.2 percent.
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