Markets broke away from the negative stranglehold of recent weeks as the Dow Jones Industrial Average surged more than 11% or 2,100 points – its best showing since 1933. The upturn came the day after a string of losses had completely wiped out more than three years of gains.
Despite the spreading coronavirus pandemic, investors were clearly upbeat that Congress will pass a rescue bill for some $2 trillion to aid out-of-work consumers and distressed industries. Exhibitors are hoping that includes them. AMC Entertainment jumped 15% and National Cinemedia rose 11%. Cinemark gained about 6%. Live Nation, another hard hit company as concerts are canceled around the world, saw its stock surge 15%.
Comcast traded sideways for much of the session but ended up 1.4% despite the Olympics (on NBCUniversal) being canceled and warning that the coronavirus is likely to have an adverse material impact on its business, pretty much across all sectors.
ViacomCBS, also hard hit in past sessions, was a real standout, flying 30%. The company said Tuesday it had extended a carriage deal with giant TV station group Nexstar that gave it a long-term agreement for another chunk of U.S. TV households.
Even broadcaster Tegna rose 7.6% despite giant ratings agency S&P Global cutting the broadcaster’s credit rating (from BB to BB-) because it thinks declines advertising related to the coronavirus will prevent the company from reducing its debt below S&P’s 2020 threshold.