Stocks rise | Kodak surges | Fed holds steady
EDITOR'S NOTE
Kodak stock has surged nearly 1,500% this week after the U.S. government awarded the company a $765 million loan to start producing drug ingredients under the Defense Production Act.
Call it a Kodak moment. Who knew that a once-bankrupt company that lost its iconic status to digital photography would be the place to be? A stock posting a 52-week low of $1.50 was trading as high as nearly $60 per share on Wednesday before settling lower.
Most of the focus on Wednesday, however, was on the Federal Reserve, which did not change interest rates or its policy of doing whatever it takes to meet the economic challenges of the coronavirus pandemic.
"The path of the economy is going to depend on the path of the virus," Fed Chairman Jerome Powell said. "That is just a very important fact of the economy right now."
Also on Wednesday, Amazon CEO Jeff Bezos, Apple CEO Tim Cook, Facebook CEO Mark Zuckerberg and Google CEO Sundar Pichai defended themselves before lawmakers looking for ways to regulate the internet, but their testimony had little effect on stocks, which ended the day higher.
Going forward, investors continue to monitor the size of the next stimulus bill. "This will be very important as a number of companies have called out how government support has been crucial to the recovery and businesses anticipate that more will be needed," wrote David Lefkowitz, head of equities for the Americas at UBS Global Wealth Management.
Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world. TOP NEWS
TOP VIDEO
CNBC PRO
SPECIAL REPORTS
|
Post a Comment