Thursday June 11, 2020

// June 11th, 2020 // Daily News

Dow plunges 1,000 points, heads for worst day since April as airlines and retailers drop

Stocks fell sharply on Thursday as coronavirus cases increased in some states that are reopening up from lockdowns. Shares that have surged recently on hopes for a smooth reopening of the economy led the declines.

The Dow Jones Industrial Average traded 1,007 points lower, or 3.8%. The S&P 500 slid 3.1% while the Nasdaq Composite dropped 2.2%. Thursday’s losses put the Dow on pace for its first three-day losing streak in a month and for its biggest one-day drop since April 1. The S&P 500 was also headed for its longest losing streak since early March.

Shares of United Airlines, Delta, American and Southwest all dropped more than 7%. Carnival Corp. and Norwegian Cruise Line shares fell more than 12%. Gap and Kohl’s shares traded lower by 6.8% and 9%, respectively.

Netflix and Zoom Video — two stocks that have benefited from consumers staying at home during the pandemic — rose 1.8% and 3.4%, respectively, clawing back earlier losses.

Concerns about a second wave of coronavirus cases have risen as U.S. states push deeper into reopening. Texas has reported three consecutive days of record-breaking Covid-19 hospitalizations. Nine California counties are reporting a spike in new coronavirus cases or hospitalizations of confirmed cases, AP reported Wednesday.

Friendly monetary policy from the Federal Reserve cannot “offset a severe COVID second wave,” said Dennis DeBusschere, macro research analyst with Evercore ISI, in a note. “With TX, AZ, CA new cases and hospitalizations increasing and investors concerned that recent protest will fuel a wave of infections, the risk of persistently weak economic and earnings growth has increased. S&P fair value estimates are falling as a result.”

To be sure, former FDA Commissioner Scott Gottlieb said states such as Arizona and Texas “never really got rid of the first wave.” He added: “It’s not a second wave.”

Overall coronavirus cases in the U.S. topped 2 million, according to the latest figures from Johns Hopkins University.

The downdraft followed two straight days of losses for the 30-stock Dow and S&P 500 as investors ditched reopening trades for the megacap tech names. The tech-heavy Nasdaq, however, jumped to a record high on Wednesday and closed above 10,000 for the first time.

Today’s Inspiration

Shake It Off

No matter what you do in life, there will always be someone who criticizes you, so you need to learn how to let it go and not let it bother you. Criticism is very difficult for most of us, and it’s easy for our self-image to be damaged by one critical remark. But it is possible to learn how not to let ourselves be negatively affected by others’ negative words. Every great man or woman has had to learn how to cope with criticism. We have to know our own hearts and not allow others’ judgment of us to keep us from moving forward.

People love you when you’re doing everything they want you to do, but they’re quick to criticize when even one little thing goes wrong. The apostle Paul experienced criticism about countless things, but he said that he wasn’t the least bit concerned about the opinions of others. He said that he did not even judge himself, but he knew he was in God’s hands and that in the end he would stand before God, and only He would judge his life.

Prayer Starter: Jesus, when criticism comes, please help me remember that You’re my only judge, and I don’t need to live to please people. Thank You for healing my hurts and giving me grace to let them go. In Jesus’ Name, amen.

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