S&P 500 posts substantial gains in early trading as investors attention shift from fear to seeking for opportunities in the heavily battered stocks. Amazon (AMZN) stock hits all-time highs amid increased demand for its products due to coronavirus lockdown. Amazon will hire 175k more delivery workers to keep up with the growing demand. Johnson & Johnson beat market estimates in Q1 earnings and revenues but cut the full-year earnings guidance from $8.95 – $9.10 EPS to $7.50 – $7.90 EPS. JPMorgan posted first-quarter profit below consensus estimates; the bank posted earnings per share of 78 cents, the expectations were for $1.84.
Meanwhile, the IMF warned that the economy would suffer the worst financial crisis since the Great Depression. IMF now forecasts the global economy to shrink by 3% in 2020 revising the January prediction of 3.3% expansion. IMF also said the more than 90 countries asked for financial support the last month amid the coronavirus outbreak.
S&P 500 is 2.23% higher at 2826, making fresh monthly highs. Now the S&P 500 has gained over 30% from the March 23 lows. The index is down 12% lower in 2020, but the rebound accelerates as the index approaches the critical 50-day moving average.