NATIONAL NEWS

Stocks Rise As Traders See Hopeful Signs In Reopening The Economy

Apr 14, 2020, 8:30 AM | Updated: 8:43 am
Flags fly at full staff outside the NYSE on April 09, 2020 in New York City. (Photo by Kena Betancu...
Flags fly at full staff outside the NYSE on April 09, 2020 in New York City. (Photo by Kena Betancur/Getty Images)
(Photo by Kena Betancur/Getty Images)

NEW YORK (AP) — Stocks are opening higher on Wall Street Tuesday as traders gingerly embrace early signs that the White House and a number of state governors are considering gradually reopening the economy.

Big companies also started reporting their first-quarter earnings, giving investors an early peek into how the coronavirus outbreak was affecting their business. Johnson & Johnson rose after beating earnings estimates, even thought the health care giant also had to slash its outlook. JPMorgan Chase rose after setting aside billions of dollars to cover potential losses. Meanwhile the International Monetary Fund said the world economy will suffer its worst year since the Great Depression.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story is below:

World shares mostly rose on Tuesday though investors were bracing for news on how the coronavirus pandemic has hurt corporate earnings and the Chinese economy.

Asian indexes largely closed higher and Wall Street futures pointed to small gains on the open. European markets, however, turned slightly lower.

France’s CAC 40 edged 0.1% lower to 4,501 and Britain’s FTSE 100 lost 0.4% to 5,818. Trading in Germany’s DAX was halted for technical problems and last traded 1.1% higher at 10,675.93 earlier in the day. The futures for the Dow industrials were up 1.3% and the S&P 500 futures gained 1.1% after earnings from Johnson & Johnson beat expectations.

“The long bank holiday weekend produced some encouraging numbers that suggest many countries are now on a more positive trajectory,” Craig Erlam, senior market analyst with Oanda, said of the panedmic and its economic impact.

Data released Tuesday showed China’s exports fell at a slower pace in March than in the previous two months. Forecasters warned of harder times ahead as the coronavirus pandemic depresses global demand and disrupts production, supply chains and finance.

“In our baseline scenario, world trade falls 9% this year, but in a ‘worst case’ scenario, the fall is 34%. Maintaining global value chains is likely to become more challenging and costly as protectionism increases, but is also a way of managing risks,” ING said in a commentary.

Beijing is due to announce economic growth for the first quarter on Friday, and a raft of potentially dismal corporate earnings also are in the pipeline.

Still, the mood in Asia was upbeat. Japan’s benchmark Nikkei 225 added 3.1% to finish at 19,638.81. Australia’s S&P/ASX 200 gained 1.9% to 5,488.10, while South Korea’s Kospi jumped 1.7% to 1,857.08. Hong Kong’s Hang Seng edged 0.6% higher to 24,435.40, and the Shanghai Composite added 1.6% to 2,827.28.

Cautious optimism that the outbreak in the U.S. has begun to plateau in some of the worst-hit areas and another big infusion of economic support by the Federal Reserve helped spur a big rally last week.

Stocks could be in for more volatility as companies report results for the first quarter, though analysts will be focusing mainly on forecasts for the rest of the year.

Details may be hard to come by, as many companies have ceased giving earnings estimates due to uncertainty over when officials will determine it’s safe to roll back the social distancing and stay-at-home mandates that have all but ground the economy to a halt.

Analysts predict that earnings for all the companies in the S&P 500 will be down 9% in the first quarter from a year earlier, according to FactSet. That would be the biggest annual decline in earnings for the index since the third quarter of 2009 when earnings slumped nearly 16%.

Johnson & Johnson reported Tuesday a rise in first quarter net income, driven by purchases of over-the-counter medicines. Its shares were up almost 3% in premarket trading. But it cut its outlook for the year. Earnings and revenue at banking group JP Morgan fell.

Other major companies that will report earnings this week include Wells Fargo, Bank of America, UnitedHealth Group, and Rite Aid.

The closure of businesses and mandates for people to stay home to combat the coronavirus pandemic have forced record numbers of people out of work, raising the possibility that many businesses could end up bankrupt. That has many investors anticipating what may be the worst recession since the Great Depression.

There are more than 1.92 million confirmed coronavirus cases worldwide, led by the United States with more than 582,000, according to a tally by Johns Hopkins University.

In energy markets, the U.S. benchmark for crude rose initially but fell later in the day, giving up 50 cents to $21.91 per barrel in electronic trading on the New York Mercantile Exchange. On Monday, it initially jumped more than $1 but then lost ground, falling 35 cents to $22.41 a barrel. Brent, the international standard, slipped 30 cents to $31.44 a barrel.

The dollar fell to 107.41 Japanese yen from 107.76 yen late Monday. The euro inched up to $1.0947 from $1.0912.

KSL 5 TV Live

Top Stories

National News

Plane collision at Dallas Air Show...
JAMIE STENGLE and JAKE BLEIBERG Associated Press

Report: No altitude advice before Dallas air show crash

A preliminary report from federal officials on a deadly midair collision at a Dallas air show says no guidance was given on altitudes before a World War II-era fighter plane crashed into a bomber.
1 day ago
emergency lights...
KEN RITTER Associated Press

Ex-con gets at least 18 years in dismembered body case in Vegas

An ex-convict who led police on a chase around Las Vegas before officers found the severed head and dismembered body of his friend in a stolen vehicle he was driving was sentenced Thursday to at least 18 years in prison.
1 day ago
PHOENIX, ARIZONA - NOVEMBER 11: Election workers open mail in ballots at the Maricopa County Tabula...
JONATHAN J. COOPER Associated Press

Arizona county certifies election after judge’s order

A rural Arizona county certified its midterm election results on Thursday, following the orders of a judge who ruled that Republican supervisors broke the law when they refused to sign off on the vote count by this week's deadline.
1 day ago
Lindsay Lohan thinks you should try Pilk.
(Pepsi)...
Danielle Wiener-Bronner, CNN Business

Pepsi wants you to drink soda mixed with milk this holiday season

Pepsi launched a campaign Thursday encouraging customers to try the combination of milk and pepsi for a holiday concoction.
1 day ago
People at vigil for four students killed in Idaho...
REBECCA BOONE, Associated Press

Victims’ families urge love, kindness as Idaho campus mourns

As hundreds of students mourned together inside the University of Idaho’s stadium Wednesday night, family members of four slain classmates urged them to raise their eyes from grief and focus on love and the future.
1 day ago
Mauna Loa spewing lava on Tuesday. (Courtesy: Paradise Helicopters via )...
Holly Yan and Aya Elamroussi, CNN

Lava spilling toward key Hawaiian highway, but the gov says it’s safe to visit the Big Island

The world's largest active volcano is shooting fountains of lava more than 100 feet high and sending a river of molten rock down toward the main highway of Hawaii's Big Island.
1 day ago

Sponsored Articles

house with for rent sign posted...
Chase Harrington, president and COO of Entrata

Top 5 reasons you may want to consider apartment life over owning a home

There are many benefits of renting that can be overshadowed by the allure of buying a home. Here are five reasons why renting might be right for you.
Festive kitchen in Christmas decorations. Christmas dining room....
Lighting Design

6 Holiday Decor Trends to Try in 2022

We've rounded out the top 6 holiday decor trends for 2022 so you can be ahead of the game before you start shopping. 
Happy diverse college or university students are having fun on their graduation day...
BYU MBA at the Marriott School of Business

How to choose what MBA program is right for you: Take this quiz before you apply!

Wondering what MBA program is right for you? Take this quiz before you apply to see if it will help you meet your goals.
Diverse Group of Energetic Professionals Team Meeting in Modern Office: Brainstorming IT Programmer...
Les Olson

Don’t let a ransomware attack get you down | Protect your workplace today with cyber insurance

Business owners and operators should be on guard to protect their workplace. Cyber insurance can protect you from online attacks.
Hand turning a thermostat knob to increase savings by decreasing energy consumption. Composite imag...
Lighting Design

5 Lighting Tips to Save Energy and Money in Your Home

Advances in lighting technology make it easier to use smart features to cut costs. Read for tips to save energy by using different lighting strategies in your home.
Portrait of smiling practitioner with multi-ethnic senior people...
Summit Vista

How retirement communities help with healthy aging

There are many benefits that retirement communities contribute to healthy aging. Learn more about how it can enhance your life, or the life of your loved ones.
Stocks Rise As Traders See Hopeful Signs In Reopening The Economy