Day Two. The stock market has rescue-package fever—and the text of the bill hasn’t even been released yet. No matter. The
Dow Jones Industrial Average
has gained 1,231.62 points, or 6%, and looks set to close higher for a second day in a row, the first time that’s happened since Feb. 6.
The market, though strong, is not quite as strong as the Dow makes it look, however. The
has risen 4.7% to 2563.20, and the
has advanced 3.1% to 7648.01. And there’s an obvious reason for that—
(BA). Shares of the airplane manufacturer have gained 30% to $166.34 on hopes that the rescue package will help it weather the storm. Since the Dow is price weighted, it has gotten a major lift—274 of points of its gain—from the stock. The S&P 500 is market-cap weighted, so has a decent slug of Boeing, but not nearly as much as the Dow. Boeing, which is listed on the New York Stock Exchange, is not in the Nasdaq Composite.
Boeing, which has been among the market’s hardest hit stocks, is not the only loser that looks like a winner today. A quick glance at the S&P 500’s best performing stocks shows that they include
Simon Property Group
(SPG), which has gained 25%,
Norwegian Cruise Line Holdings
(NCLH), up 23%,
(MPC), which has risen 23%, and
Delta Air Lines
(DAL), up 21%. All had been hit hard during the bear market.
Former winners have become losers. Grocer
(KR) has dropped 5.9%,
(TGT), which withdrew its guidance Wednesday, has fallen 5.9%, and
(WMT) is off 4.9%. Food makers
(CPB) are also among the top-10 losers, as are biotech stocks
(GILD). It’s almost as if the market is making a big bet that the worst of the coronavirus is over, or at least priced into some of the hardest-hit stocks.
Time will tell if it’s right.
Write to Ben Levisohn at Ben.Levisohn@barrons.com