After a large loss yesterday at the stock market, Tuesday saw a large recovery. Investors are glad to see such a strong one-day gain after things were looking quite bleak on Monday.
Salary Tax Cuts for Business Promised
One of the events that were believed to bring some positive action to the markets was the White House’s move to help businesses better cope with the recent slowdown in business. A stimulus package that will likely include a payroll tax cut may be in the works.
Sick Leave for Some Sick Employees
Another positive move from the White House is that President Trump encouraged businesses to ensure that they can give sick leave to employees that have to be quarantined because of coronavirus. The purpose is to prevent sick employees from feeling that they have to return to work because of lost hours or the possibility of losing their job – which would only spread the virus. Walmart has already initiated a policy to give paid sick leave up to two weeks for employees who come down with the virus, and longer for those who require it.
Travel Industry Help Coming
President Trump also indicated that he wanted to help the travel industry, which has been hit very hard because of coronavirus. The industries that will most likely receive a helping hand include the airlines and the cruise ship lines. After Americans have been advised to not travel because of the virus, these industries have felt a real downturn in ticket sales.
After the President’s announcement of possible economic help, gains were seen at the Royal Caribbean Cruises and the Norwegian Cruise Line. Carnival stock saw gains of 10.49% bringing it to $24.02. The Norwegian Cruise stock rose 3.48% to become $20.50.
Stock Market Gains
The Dow Jones gained almost 1,200 points before the bell. Yesterday’s close was at 23,851.02 but it closed at 25,018.16 today – a gain of 4.89%. Although today’s gain is good, there has been a loss of 10.27% over the last three months and a loss of 2.10% over the past year. The all-time high was 29,568.57. All components of the exchange showed gains, with JP Morgan Chase & Co. having the largest gain of 7.77%.
Some of the major stocks that are commonly watched have also gained. Apple gained 4.66% and is now at $278.50. Citigroup gained considerably by 8.19% to become $55.58 and a General Electric rose by 7.19% to $8.80.
The energy market and the oil companies have gained on Tuesday along with the stock market. This was just a day after a drop of about 25% on Monday when Russia and OPEC failed to agree on cutting output.
Crude oil gained an overall 9.40%, rising to $34.36. Natural gas rose by 8.16%, going to $1.94. Gold saw a small drop in price to $1,658.51 per ounce, which is a loss of 0.04%.
As coronavirus continues to spread, there really is no way of knowing what the stock market is going to do. It still needs to be watched but do not expect to be able to predict what will happen. With such wild swings as have been seen lately, it is a good idea just to hold on to them.