Why Macy's, Kohl's, and Gap Jumped Today
Shares of Macy's (NYSE: M), Kohl's (NYSE: KSS), and Gap (NYSE: GPS) were all climbing today, seemingly in response to steps by the Federal Reserve to stabilize the economy. Among other moves, the central bank said it would supply liquidity to help support the Paycheck Protection Program, a new loan program designed to keep small business employees on payrolls while stores are closed to stop the spread of the coronavirus. The Fed will also purchase up to $600 billion in loans through the Main Street Lending Program, helping to ensure the flow of credit to small and medium-sized businesses.
While these programs don't appear to directly support larger corporations such as Macy's, Kohl's, and Gap, investors were nonetheless assuaged by the move as it should help grease the economy in the near term, allowing consumers to spend more, and make the recovery smoother once coronavirus concerns begin to fade away.
Macy's stock closed up 11%; Kohl's finished 13.6% higher, and Gap increased 15.8%.
Source Fool.com
