US Stock Market Overview – Stocks Rally Led by Energy; Cyclicals Trail

US stocks moved higher on Wednesday as corporate earnings showed some positive signs. Chipotle, Snap, and Netflix reported on Tuesday after the bell. All sectors in the S&P 500 index were higher led by Energy and Technology. Oil prices rebounded sharply, despite a larger than anticipated build in crude oil inventories. Demand continued to decline, with gasoline demand declining to show a 40% year over year decline. The Senate passed a stimulus bill that will go to the House of Representatives for a vote on Thursday. Sycamore Partners is looking to bail on its L-brands purchase.

Senate Passes Stimulus Bill

The Senate passed the $484 billion bill by a voice vote, sending it to the House for approval expected Thursday. President Trump said on Twitter he supported the legislation. Most of the packages will go to the SBA, to help provide loans to small businesses. The program ran out of fund this month and will be topped up with another 360-billion. The package, which lawmakers dubbed an interim emergency bill, also includes funding to ramp up the country’s testing for the new coronavirus.

Spending will Provide Relief

Treasury Secretary Steven Mnuchin said that rising federal debt will come second to the need for stimulus and emphasized that low-interest rates and the urgency of helping the economy during the coronavirus outbreak would be the keys to the country’s success.

Sycamore Partners Looks to Bail on L-Brands

Private-equity firm Sycamore Partners wants to back out of its plans to take control of Victoria’s Secret. The Private investor group said the decision by L Brands Inc. to close its U.S. stores in March, furlough the majority of its workers and skip April rent payments were violations of the proposed transaction. The firm is seeking the court’s blessing to break the deal.