At 1:00am Chicago time, the House came to an agreement over the $2 trillion coronavirus stimulus package. After that, the night session became a volatile ping pong match with the Minis bouncing between -35 and +20.
The market during normal trading hours opened moderately higher before falling. Perhaps it was a case of muscle memory where all previous efforts to stimulate the economy sent the Dow down -1000 points, but the market immediately fell with the SPX hitting a low of -40.
It is helpful to recall that the Fed has been pulling its weight by having 2 surprise rate cuts of 50 bps each, and many instances of hundreds of billions of monetary stimulus. Each time the Fed did this, the market fell dramatically after an initial temporary rise.
Once the initial knee-jerk reaction and fear of a “buy the rumor / sell the fact” event was over, the market began a steady and strong advance throughout the day. The SPX hit a high of 2571 (+124.09). About 300 of the Dow points alone was Boeing.
The travel industry stocks were the big gainers with Boeing being the beast.
Boeing (BA) gained 31.05 points (+24.32%) closing at 158.73. It is important to remember that this stock was at 89 a few days ago, so hitting a high of 174 yesterday was a huge event. HUGE.
American Airlines (AAL) gained 1.47 (+10.56%) closing at 15.39. This stock was below $10 last week.
Delta Airlines (DAL) was up $4.21, closing at 31.10 (+15.66%).