Stocks fell again today as the meltdown in oil that created negative prices yesterday in a soon-to-expire contract spread past the expiring contract and weighed down prices for oil to be delivered in June and later, not just in May. Meanwhile, the world has reached a grim milestone as the number of confirmed COVID-19 cases around the globe has now hit 2.5M. Republicans and Democrats have been fighting for over a week over what to include in the fourth round of financial stimulus designed to ease the economic toll of the pandemic, but reports indicate that Democrats and the White House have reached an agreement on a new round of COVID-19 aid that could be approved by the Senate on Tuesday if all 100 senators agree.
ECONOMIC EVENTS: In U.S. data, existing home sales dropped 8.5% in March to a 5.27M home rate, which was a little below expectations.
Meanwhile, the latest data from the Johns Hopkins Whiting School of Engineering shows there are now 2.5M confirmed cases of COVID-19 disease.
In White House news, President Donald Trump said via Twitter that after he signs the stimulus bill currently slated to reach the Senate and House, his administration will begin discussions on the next legislative initiative for fiscal relief to state and local governments. Politico reported that Democrats and the Trump administration have reached an agreement on a new round of COVID-19 aid that could be approved by the Senate on Tuesday if all 100 senators agree.
TOP NEWS: Shares of IBM (IBM) fell 3% after Big Blue reported better than expected adjusted EPS alongside slightly lower than expected revenue in the first quarter. IBM, like many others, is withdrawing its full-year 2020 guidance in light of the current COVID-19 crisis, but said during its Q1 earnings conference call that performance was in line with expectations in February before COVID-19. In an interview on CNBC's Mad Money, Arvind Krishna added that he expects to maintain the dividend going forward.
Meanwhile, Coca-Cola (KO) shares closed 2.5% lower after the company reported better than expected earnings and revenue in the first quarter. The company said it had been growing volume 3%, excluding China, and was on track to achieve its previously provided full year 2020 targets through the end of February. "As the coronavirus pandemic continues to evolve, there is uncertainty around its ultimate impact; therefore, the company's full year financial and operating results cannot be reasonably estimated at this time," Coke added.
LabCorp (LH) announced that it has received an Emergency Use Authorization from the FDA that permits nasal swab specimens to be collected at home using the Pixel by LabCorp COVID-19 test home collection kit.
Additionally, Reuters reported that ValueAct Capital has built a stake of over $1.1B in Nintendo (NTDOY), betting that digital software distribution and the development of new entertainment products will bolster growth at the video game maker.
MAJOR MOVERS: Among the noteworthy gainers was Beyond Meat (BYND), which rose 7.4% after CNBC reported that Starbucks (SBUX) will debut Beyond Meat products in China. Also higher was ManpowerGroup (MAN), which gained 7.6% after reporting quarterly results.
Among the notable losers was Qurate Retail (QRTEA), which slid 7.8% after UBS analyst Eric Sheridan downgraded the stock to Neutral from Buy. Also lower was Philip Morris (PM), which fell almost 6% after reporting quarterly results.
INDEXES: The Dow fell 631.56, or 2.67%, to 23,018.88, the Nasdaq lost 297.50, or 3.48%, to 8,263.23, and the S&P 500 declined 86.60, or 3.07%, to 2,736.56.
IBM
-3.685 (-3.06%)
Coca-Cola
-1.25 (-2.69%)
Labcorp
+2.12 (+1.45%)
Nintendo
+ (+0.00%)
Beyond Meat
+5.77 (+7.29%)
Starbucks
-2.59 (-3.44%)
ManpowerGroup
+4.79 (+7.73%)
Qurate Retail
-0.595 (-7.81%)
Philip Morris
-4.52 (-5.89%)