US stock exchanges hardly change – Gilead Sciences weighed down

Dusseldorf The US stock exchanges closed little changed on Thursday. Relief from US economic data initially supported Wall Street. A media report on disappointing test results with the remdesivir agent for the possible treatment of Covid-19 then depressed the mood in late trade.

The standard value index Dow Jones closed 0.2 percent higher at 23,515 points. The technology-heavy Nasdaq stagnated at 8494 points. The broad S&P 500 lost 0.1 percent to 2797 points.

Last week, 4.4 million Americans applied for US unemployment benefits. In the previous week, however, the number of initial applications had been around a million higher.

The markets rated this as positive, even if a recession could not be averted, said Steven Blitz, chief economist for the USA at the research house TS Lombard. Investors appear to be betting that the economy will recover quickly if the restrictions to curb the coronavirus pandemic are relaxed.

However, Peter Cardillo, chief economist at Spartan, advised against excessive expectations. “The worst of the pandemic is probably behind us,” said Peter Cardillo, chief economist at Spartan. “But with the oil price at the current level, there is a threat of a wave of layoffs in the US energy sector, which will nullify the effects of a restarting economy.”

The US crude oil grade WTI rose 23 percent to $ 16.95 a barrel (159 liters) after its price fell below zero for the first time at the beginning of the week. At the beginning of March – before the outbreak of the virus crisis in the USA and before the price war between Saudi Arabia and Russia – WTI had still cost twice as much.

This drop in price is a problem especially for shale oil producers. According to experts, because of the complex fracking process, they only work profitably at a price of around $ 50.

Focus on individual values

Nevertheless, investors also accessed these values. The shares of companies like marathon, Occidental or Apache won up to eleven percent. The papers of the oil multinationals Exxon and Chevron each advanced about three percent. The paper from the company active in health care was also among the top values UnitedHealth with plus 3.0 percent.

The titles of Las Vegas Sands, which rose by around twelve percent. The casino operator expects the important Asian business to recover quickly as soon as the travel restrictions there are lifted. Competitors’ shares Wynn and MGM won up to 8.6 percent.

Eli Lilly shares jumped to a record high at $ 162.56. With a smaller plus of 2.1 percent to $ 159.93, they finally went out of the day. Investors recognized the 40 percent year-over-year increase in sales of the blockbuster drug Trulicity for diabetes to a quarterly record of $ 1.2 billion.

By contrast, the shares of Target, even though the retailer’s online sales almost quadrupled in the past quarter, making up for lost business from closed stores. However, the company warned of shrinking profit margins due to wage increases for employees. Target shares lost 2.8 percent.

The titles of Crocs even slipped by more than 16 percent. Known for its rubber slippers, the shoe manufacturer fell short of market expectations with quarterly sales of $ 281.2 million and earnings of $ 0.16 per share. The company also warned of further losses in the current quarter due to virus restrictions.

Among the losers Gilead Sciences with a discount of 4.3 percent. The company denied a media report of disappointing test results with the remdesivir agent for the possible treatment of Covid-19.

The study in China was terminated prematurely due to a lack of participants and was therefore not statistically meaningful, the US pharmaceutical company explained. The Financial Times has presented the process inappropriately, the World Health Organization accidentally posted a draft clinical trial on the Internet. The UN organization confirmed the breakdown and said the document had been removed after the error became known.

Quarterly reports were also in view.

Air Products & Chemicals Withdrawn the 2019/20 financial year forecast for earnings per share from the figures. The industrial gases manufacturer’s paper then gave way by 1.5 percent.

The chip manufacturer’s quarterly report, which was announced after the market closed, was also eagerly awaited Intel, whose shares in the Dow lost 1.8 percent. Intel ultimately disappointed with its earnings outlook for the second quarter, whereupon the papers gave in even more after-hours.

The share certificates of Snap down. The makers of the photo app Snapchat want to get $ 750 million (695 million euros) of fresh money on the market in the face of the corona crisis via convertible bonds.

In the US bond market, trend-setting ten-year government bonds rose 5/32 points to 108 16/32 points and returned 0.603 percent. The euro exchange rate went up and down in US trade and ultimately slid below the $ 1.08 mark again. At the close on Wall Street, the common currency was $ 1.0771. The European Central Bank set the reference price at $ 1.0772 (Wednesday: 1.0867). The dollar thus cost 0.9283 (0.9202) euros.

More: Read here what moves the German stock market on Thursday.


Wall Street gets off to a good start – US unemployment figures have dropped

Wall Street

The New York Stock Exchange is located on the famous street.

(Photo: AP)

Dusseldorf The declining number of first-time jobless claims in the US seems to be giving investors hope that the economy will quickly recover from the corona shock. The Dow Jones started the trading day with a profit increase of around one percent at 23,543 points. The situation was similar at the start of trading for the S&P 500 (2810 points) and the Nasdaq (8529 points).

The prospect of further stimulus from the US government had prompted investors to buy stocks again on Wednesday. The standard value index Dow Jones closed two percent higher at 23,475 points. The technology-heavy Nasdaq advanced 2.8 percent to 8495 points. The broad S&P 500 gained 2.3 percent to 2799 points.

As announced on Thursday, the number of first-time job applications in the US has decreased compared to the previous week: by April 18, 4.4 million Americans had registered unemployment. Previously, 5.2 million people applied for new support. In the meantime, 26 million people have lost their jobs within a month.

However, it is certain that the corona pandemic thus slowed the positive development of the US labor market: In February, the USA celebrated the lowest unemployment rate in decades, and until March, initial applications were regularly below 100,000 a week. Some analysts estimate the US unemployment rate as high as 15 percent.

Look at the individual values

Of the Casino operator Las Vegas Sands expects the important Asian business to recover quickly as soon as the travel restrictions there are lifted. Las Vegas Sands shares then rose 13 percent, while competitors Wynn and MGM gained up to 12 percent.

Things looked worse with the papers from Target out. Although the retailer’s online sales almost quadrupled in the past quarter, thereby compensating for the losses due to closed stores, the share came under pressure: the company warned of shrinking profit margins due to wage increases for employees. The Target shares lost 5.9 percent.

With agency material.

More: Read here what moves the German stock market on Thursday.


Dow Jones, Nasdaq, S & P500: US exchanges slightly down

Dusseldorf For the second day in a row, the US stock market started the day with strong gains. In the course of trading, the most important indices lost their profits again and fell slightly into the red. The Dow Jones lost 0.1 percent and closed at 22,653 points. The broader S&P 500 lost 0.2 percent to 2659 points, the technology-heavy Nasdaq Composite dropped 0.3 percent to 7887 points.

The financial service provider was again one of the big winners on Tuesday American Express. Yesterday, the papers already registered an increase of more than ten percent and now reached a price increase of 4.4 percent.

On Monday, Wall Street had a brilliant start to the week. The most important stock indices soared by up to almost eight percent. In terms of points, the Dow Jones posted the third-largest daily profit of all time and again reached the level of mid-March.

The positive development in Asia obviously gave rise to optimism on Tuesday: in South Korea there were fewer than 50 new corona cases for the second day in a row. There were no new deaths in China for the first time on Monday. Both countries were among the first in which infection rates peaked. From the current development, investors hope to draw conclusions about the course of the epidemic in the USA.

The strategists of JP Morgan doubt, however, that the US stock markets have already reached their final low. They point out that the S&P 500 has taken an average of 18 months to find its bottom in a recession.

Before investors buy stocks again sustainably, one should first wait to see if there is no second wave of infection in China and the western countries if the current restrictions are lifted. In addition, further government stimulus packages are needed.

A buy signal would be, however, according to the experts from JP Morgan, if stocks in the S&P 500 were only valued at ten times the current profit. Currently this value is still at 15. Until then, the analysts recommend a defensive orientation and take profits in short-term market recoveries.

Goldman Sachs analyst Steve Kostin has already calculated how the pandemic will affect the share buyback programs and dividends of US corporations. He expects the companies listed in the S&P 500 to cut their share buybacks by up to 50 percent by the end of the year to $ 371 billion. The dividends would drop by 25 percent.

Individual values ​​at a glance

The titles of Shale oil conveyors such as Marathon, Occidental or Apache, which became up to twelve percent more expensive. According to stock marketers, they benefited from the hope of a significant reduction in the throttling by the exporting countries organized in “Opec +”.

According to experts, shale oil producers only work profitably from an oil price of around $ 50 per barrel because of the complex fracking process. The US variety WTI initially became more expensive on Tuesday, but then cost $ 25.15, 3.6 percent less than on Monday.

Investors are also betting on an impending relaxation of restrictions on public life. They stocked up primarily with leisure and tourism values ​​that had been particularly hard hit in the past few weeks. So the shares of the cruise operator rose Carnival, the hotel chain Marriot, the casino operator MGM and the online travel agency by up to 10.7 percent.

The papers from Boeing lost their initial gains and fell almost five percent at the end of the Dow after shooting up nearly 20 percent on Monday. The ailing aviation giant is now also stopping the production of its long-haul jet 787 “Dreamliner” in the state of South Carolina due to the corona crisis. It was only on Sunday evening that the aircraft manufacturer announced that the production break in its Washington state factories would be extended indefinitely.

With agency material.

More: Investors should use market recoveries for sale.


The start of the James Bond film “No time to die” is postponed

“Hoppala, an error has occurred”, it says after clicking on “Secure tickets here!” On the Universal Pictures Germany website. Those who wanted to secure a place in the cinema early enough a month before the planned release of the new James Bond film “No time to die” must unfortunately be disappointed: The start date of the latest 007 film has been postponed – again.

Instead of being released in local cinemas on April 2, the line of agents is now to be continued in November. MGM, Universal Pictures and bond producers Michael Wilson and Barbara Broccoli announced this on Wednesday on the official James Bond website and on social media. The decision was based on “careful examination and thorough evaluation of the global cinema market”.

Due to the fact that cinemas in Italy, South Korea, China and Japan have already been closed due to the coronavirus epidemic, the British Guardian reports that revenue losses of up to five billion dollars are feared. The bond franchise is traditionally carried by the international markets. The last four films had generated more than seventy percent of their sales outside of the United States.

For the third time, the theatrical release of “No time to die” has been postponed. The film was supposed to start in November last year. The resignation of director Danny Boyle due to “creative differences”, changes to the script by the successor Cary Joji Fukunaga and an injury to the lead actor Daniel Craig caused the appointment changes. The 25th Bond film is set to premiere in the UK on November 12 this year. The start date for the United States is November 25th. When exactly the film, for which the advance booking had already started, will be released in German cinemas is not yet clear.