Stocks were higher in wild trading yesterday as investors weighed the prospects of fiscal stimulus to curb slower economic growth stemming from the coronavirus outbreak.
Shares of American Airlines rose after the company said they are slashing international and domestic flights as the coronavirus dents travel demand. American said it will shave 10% off its peak summer international flying, including a 55% slash to trans-Pacific flying. United Airlines reported a 70% drop in domestic demand in the last few days and said it will make more deep cuts to flights in the coming months as coronavirus keeps travelers at home.
President Trump, in a meeting with Republican lawmakers on Capitol Hill yesterday, pitched a 0% payroll tax rate that would last through the rest of this year. There was also discussion of making the payroll tax rollback permanent. The development comes as Trump and the White House try to put together an economic stimulus plan to counteract the impact from the widening coronavirus outbreak.
Mortgage rates in the United States have fallen to the lowest level ever. The 30-year fixed-rate mortgage dropped to 3.2%. Previously, the 30-year fixed-rate mortgage hit an all-time low back in November 2012 in the wake of the recession, when the average rate fell to 3.31%.
With Northwest Quadrant Wealth Management, I’m Tyler Simones.