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May 18, 2020, 4:47 p.m. EDT

Dow rises more than 900 points, books its biggest daily advance in 6 weeks on coronavirus vaccine hope

Fed’s Powell says don’t ‘bet against American economy’ — even as unemployment could rise to 25%

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By Mark DeCambre, MarketWatch , Joy Wiltermuth

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On Monday, Powell reiterated that the Fed’s rate-setting committee would use its “full range of tools tool” to aid the economy.

Meanwhile, data on Monday showed Japan’s economy, shrank by an annualized 3.4% in the three months ended March 31 after a 7.3% contraction in the previous quarter, meeting the commonly accepted definition for a recession.

Still, plans to restart stalled economies inside and outside the U.S. have continued to act as a support for markets, which have mostly been stuck in a narrow trading range since rising from March 23 bear-market low.

Rising cases in the U.S., however, where there are more than a third of the 4.7 million world-wide infections, has underpinned fitful trade in assets considered risky. Deaths in the U.S. rose above 89,500, more than a quarter of the more than 315,000 world-wide, according to figures from Johns Hopkins .

Which stocks were in focus?

  • Tesla Inc . /zigman2/quotes/203558040/composite TSLA -2.48% was given the green light from local officials to resume operations at its Fremont, Calif., auto plant, according to the San Francisco Chronicle in a Sunday report, ending a battle with Alameda County officials, who had barred the opening of factories and manufacturing facilities to slow the spread of coronavirus. Tesla’s stock rose 1.8%.

  • Shares of American Airlines Group Inc . /zigman2/quotes/209207041/composite AAL -0.08% , Delta Air Lines Inc . /zigman2/quotes/200327741/composite DAL +0.37% United Airlines Holdings Inc . /zigman2/quotes/205037281/composite UAL -0.20%  and S outhwest Airlines Co . /zigman2/quotes/201071949/composite LUV +0.79%  gained more than 9%, following an upbeat TSA data and analyst commentary added to the optimism that a post-COVID-19 pandemic recovery may have already begun.

  • Uber Technologies /zigman2/quotes/211348248/composite UBER -5.21% shares climbed 3.5% despite food-delivery company Grubhub Inc. /zigman2/quotes/210404212/composite GRUB +0.01%  rejecting its recent buyout offer from the ride-sharing company. Uber also said it would cut an additional 3,000 jobs.

  • SoftBank Group Cor p. /zigman2/quotes/207303954/delayed JP:9984 -0.41%  is in talks to sell a significant portion of its T-Mobile US Inc . /zigman2/quotes/204659678/composite TMUS +6.47% stake to controlling shareholder Deutsche Telekom AG /zigman2/quotes/207225900/composite DTEGY +1.62%  as the Japanese technology conglomerate scrambles to raise funds.

  • Shares of Moderna /zigman2/quotes/205619834/composite MRNA +0.46% soared 20% after the company’s report on its experimental vaccine. The company, after the bell, said it plans to raise more than $1 billion by selling stock to help fund manufacturing and distribution of tis vaccine candidate.

  • Hertz Global Holdings Inc. said Monday it has named Paul Stone as the new chief executive to replace Kathryn Morinello. Its shares closed 20.1% higher.

  • Occidental Petroleum Corp. /zigman2/quotes/207018272/composite OXY 0.00% shares gained 9% even after French oil company Total canceled its plan to buy Occidental’s assets in Ghana.

  • Apple Inc. shares /zigman2/quotes/202934861/composite AAPL -2.27% rose 2.4% after the iPhone maker said it would reopen more than 25 stores this week .

  • Shares of General Electric Co . /zigman2/quotes/208495069/composite GE +1.11% charged 14.2% higher Monday, to bounce off the previous session’s 29-year low, as part of a broader stock market surge amid investor optimism over the post-COVID-19 scenario.

  • Eventbrite Inc . /zigman2/quotes/208043748/composite EB +6.69%  shares surged 24.6% Monday after SunTrust Robinson Humphrey analyst Youssef Squali upgraded the stock to buy from hold, calling the stock’s 40% drop since last week’s earnings an “overreaction.”

  • Shares of Expedia Group Inc . /zigman2/quotes/202291990/composite EXPE -1.96% gained 18.6% Monday.

How did other markets trade?

U.S. government bond yields rose along with stocks, with the 10-year Treasury note /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y 0.00% rising 10.1 basis points to 0.741%, its biggest daily rise since March 18, according to Dow Jones Market Data. Bond prices move in the opposite direction of yields.

In precious metals, gold futures for June delivery fell 1.3% to settle at $1,734.40 an ounce. Meanwhile, crude prices continued to rally as June oil futures booked an 8.1% gain to end at $31.82 a barrel, more than a two-month high.

In global equities, the Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP +0.29% climbed 4.1%, its largest one-day gain since March 24, while Japan’s Nikkei /zigman2/quotes/210597971/delayed JP:NIK -0.39% rose 0.5%.

The greenback weakened against a basket of its major rivals, with the ICE U.S. dollar index /zigman2/quotes/210598269/delayed DXY +0.65% trading down 0.8%.

<STRONG>Sunny Oh contributed reporting</STRONG>

/zigman2/quotes/203558040/composite
US : U.S.: Nasdaq
$ 1,452.71
-36.87 -2.48%
Volume: 8.90M
Aug. 7, 2020 4:00p
P/E Ratio
756.03
Dividend Yield
N/A
Market Cap
$270.73 billion
Rev. per Employee
$439,627
loading...
/zigman2/quotes/209207041/composite
US : U.S.: Nasdaq
$ 13.03
-0.01 -0.08%
Volume: 61.70M
Aug. 7, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$6.63 billion
Rev. per Employee
$345,547
loading...
/zigman2/quotes/200327741/composite
US : U.S.: NYSE
$ 27.18
+0.10 +0.37%
Volume: 15.25M
Aug. 7, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$17.34 billion
Rev. per Employee
$499,337
loading...
/zigman2/quotes/205037281/composite
US : U.S.: Nasdaq
$ 34.33
-0.07 -0.20%
Volume: 30.39M
Aug. 7, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$9.99 billion
Rev. per Employee
$448,946
loading...
/zigman2/quotes/201071949/composite
US : U.S.: NYSE
$ 33.28
+0.26 +0.79%
Volume: 9.38M
Aug. 7, 2020 4:00p
P/E Ratio
82.85
Dividend Yield
0.00%
Market Cap
$19.63 billion
Rev. per Employee
$373,554
loading...
/zigman2/quotes/211348248/composite
US : U.S.: NYSE
$ 32.90
-1.81 -5.21%
Volume: 39.07M
Aug. 7, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$57.44 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210404212/composite
US : U.S.: NYSE
$ 75.01
+0.01 +0.01%
Volume: 1.13M
Aug. 7, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$6.92 billion
Rev. per Employee
$370,043
loading...
/zigman2/quotes/207303954/delayed
JP : Japan: Tokyo
¥ 6,521.00
-27.00 -0.41%
Volume: 15.34M
Aug. 7, 2020 3:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
¥13485.40 billion
Rev. per Employee
¥126.96M
loading...
/zigman2/quotes/204659678/composite
US : U.S.: Nasdaq
$ 115.09
+6.99 +6.47%
Volume: 13.77M
Aug. 7, 2020 4:00p
P/E Ratio
37.55
Dividend Yield
N/A
Market Cap
$142.46 billion
Rev. per Employee
$832,885
loading...
/zigman2/quotes/207225900/composite
US : U.S.: OTC
$ 17.54
+0.28 +1.62%
Volume: 73,498
Aug. 7, 2020 3:57p
P/E Ratio
19.28
Dividend Yield
3.69%
Market Cap
$82.97 billion
Rev. per Employee
$413,841
loading...
/zigman2/quotes/205619834/composite
US : U.S.: Nasdaq
$ 74.10
+0.34 +0.46%
Volume: 8.77M
Aug. 7, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$28.81 billion
Rev. per Employee
$177,721
loading...
/zigman2/quotes/207018272/composite
US : U.S.: NYSE
$ 15.45
0.00 0.00%
Volume: 20.96M
Aug. 7, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
0.26%
Market Cap
$14.19 billion
Rev. per Employee
$1.60M
loading...
/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 444.45
-10.34 -2.27%
Volume: 49.51M
Aug. 7, 2020 4:00p
P/E Ratio
33.78
Dividend Yield
0.74%
Market Cap
$1900.31 billion
Rev. per Employee
$1.98M
loading...
/zigman2/quotes/208495069/composite
US : U.S.: NYSE
$ 6.40
+0.07 +1.11%
Volume: 83.06M
Aug. 7, 2020 4:00p
P/E Ratio
15.65
Dividend Yield
0.63%
Market Cap
$56.02 billion
Rev. per Employee
$429,735
loading...
/zigman2/quotes/208043748/composite
US : U.S.: NYSE
$ 9.25
+0.58 +6.69%
Volume: 1.33M
Aug. 7, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$805.91 million
Rev. per Employee
$279,156
loading...
/zigman2/quotes/202291990/composite
US : U.S.: Nasdaq
$ 82.56
-1.65 -1.96%
Volume: 3.20M
Aug. 7, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$11.66 billion
Rev. per Employee
$458,082
loading...
/zigman2/quotes/211347051/realtime
add Add to watchlist BX:TMUBMUSD10Y
BX : Tullett Prebon
0.57
0.00 0.00%
Volume: 0.00
Aug. 7, 2020 4:59p
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/zigman2/quotes/210599654/delayed
XX : STOXX
363.55
+1.06 +0.29%
Volume: 0.00
Aug. 7, 2020 11:03p
loading...
/zigman2/quotes/210597971/delayed
JP : Nikkei
22,329.94
-88.21 -0.39%
Volume: 0.00
Aug. 7, 2020 3:15p
loading...
/zigman2/quotes/210598269/delayed
US : U.S.: ICE Futures U.S.
93.39
+0.60 +0.65%
Volume: 0.00
Aug. 7, 2020 6:00p
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Mark DeCambre is MarketWatch's markets editor. He is based in New York. Follow him on Twitter @mdecambre. Joy Wiltermuth is a MarketWatch markets reporter and editor based in New York.

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