The markets rejoiced today as the Dow Jones Industrial Average increased nearly 11.4%, the most since 1933 and a record in absolute dollar terms increasing 2,112.98 points. Prior to today, the Dow had lost more than 30% (8,800 points) since it peaked on Feb. 12 ending the 11 year bull market.
The latest on the proposed Senate Stimulus Package, includes direct payments of $1,200 to adults and $500 to children, a $500B lending program for companies, states, and cities, and another $367B to help small companies deal with payroll problems. The bill would bolster the unemployment insurance system, and inject $150B into hospitals.
In terms of the $500B lending program, the Treasury Department will to try to ease the economic impact of the virus, including some bailouts for the private sector:
- $425B to businesses, cities and states.
- $50B to passenger airlines.
- $8B for cargo airlines.
- $17B for firms deemed important to national security.
Not surprisingly, airline operators had quite the day. The NYSE Arca Airline index XAL, closed up a hair under 20%. And the index is up for three straight days; 27% in the period.
We are very close. We are close to a bill that takes our bold Republican framework, integrates further ideas from both parties and delivers huge progress.”
Mitch McConnell, Senate House Leader to CNN
Pelosi suggested to CNN she hoped to avoid bringing the full House to Washington to vote on the stimulus package, passing it through unanimous consent, allowing for a vote as early as Tuesday. Unanimous consent is commonly used for uncontroversial measures, typically not for packages this size; any one member can block a unanimous consent request.
Information for this briefing was found via the provided links, y-charts, and CNN . The author has no securities or affiliations with any of the mentioned securities. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
