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.

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Biden victory in US area code boosts shares

Wall Street

Traders on the trading floor.

(Photo: AP)

new York Investors reacted with relief to the victory of former Vice President Joe Biden in the US primaries and gave Wall Street strong growth. The Dow Jones index of standard values ​​closed 4.5 percent higher at 27,090 points, the technology-heavy Nasdaq advanced 3.9 percent to 9018 and the broad S&P 500 4.2 percent to 3130 positions.

“For the markets, Biden’s good results in the primaries and the expectation of more monetary easing worldwide are more important than the continued spread of the corona virus and poor economic data from China,” said Mohamed El-Erian, chief economic advisor to Allianz.

On “Super Tuesday”, Biden, previously beaten, won in nine of 14 states. “It’s music to Wall Street’s ears,” said analyst Raffi Boyadjian of XM brokerage firm. She had less to fear from Biden’s moderate positions than from the agenda of the self-proclaimed socialist Bernie Sanders, who is now in a head-to-head race with Biden for the nomination as a challenger of US President Donald Trump.

Concern that Sanders could have continued its winning streak on Tuesday was one of the reasons for the drastic slump last week, said independent economist Ed Yardeni. “Sander’s programs include a number of tax increases and regulations that would weigh on the economy and corporate profits,” said Yardeni. The market recovery on Wednesday shows that US policy is just as important to investors as the consequences of the corona virus.

Focus on individual values

The main beneficiaries of Biden’s success were private health insurers UnitedHealth, Centene, Humana and Cigna, whose shares rose by almost 16 percent. Sanders advocates mandatory state health insurance.

US banks should also be relieved about Sander’s setback. Sanders plans to regulate Wall Street significantly more and split up major banks. The stocks of houses like industry leaders JP Morgan Chase. Wells Fargo and Bank of America were more than half a percent up.

A disappointing view pressed Nordstrom, The retailer’s shares fell 1.7 percent. The company expects earnings of $ 3.25 to $ 3.50 per share in 2020. Analysts had previously expected an average of $ 3.49. Possible impairments caused by the coronavirus epidemic have not yet been included here.

Campbell was on the shopping lists. The shares of the food supplier known for its canned soups jumped more than ten percent after the quarterly figures were presented.

Corona briefing

But analysts caution: They are primarily concerned about the immediate consequences of Tuesday’s rate cut. “The Fed cut interest rates, the yield on US bonds fell, which is a bad omen for financial stocks,” the analysts of the investment bank BKW wrote in a report.

Fear of a global recession slump and the resulting slump in US corporate earnings this year has reduced the market value of major US companies $ 3.1 trillion in the past ten days.

The National Employment Report contributed to the positive mood ADP who showed that US wage costs rose more than expected in February. The data is seen as a precursor to the broader US job market data coming Friday.

Investors are eagerly awaiting the so-called “Beige Book”, the economic report from the US Federal Reserve. This should provide information on the effects of the corona virus on the domestic economy.

More: The turnaround on global stock exchanges is long overdue

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Biden victory in US area code boosts Wall Street

Wall Street

Traders on the trading floor.

(Photo: AP)

new York Investors are relieved to see former Vice President Joe Biden’s victory in the US primaries. The leading indices Dow Jones, Nasdaq and S&P 500 rose by up to 1.9 percent at the opening.

“For the markets, Biden’s good results in the primaries and the expectation of more monetary easing worldwide are more important than the continued spread of the corona virus and poor economic data from China,” said Mohamed El-Erian, chief economic advisor to Allianz.

Concern that Sanders could have continued its winning streak on Tuesday was one of the reasons for the drastic slump last week, said independent economist Ed Yardeni. “Sander’s programs include a number of tax increases and regulations that would weigh on the economy and corporate profits,” said Yardeni. The market recovery on Wednesday shows that US policy is as important to investors as the consequences of the corona virus.

Health insurers like United Health and Anthem were clearly in positive territory at the start of trading in New York. Investors are relieved that the chances for Bernie Sanders decreased on Tuesday. Sanders calls for statutory health insurance for all Americans, which would massively change the healthcare industry and make private providers practically obsolete.

US banks should also be relieved about Sander’s setback. Finally, Sanders plans to regulate Wall Street much more strongly and to split up big banks. The stocks of houses like industry leaders JP Morgan Chase. Wells Fargo and Bank of America were around one percent higher in early trading.

But analysts caution: They are primarily concerned about the immediate consequences of Tuesday’s rate cut. “The Fed cut interest rates, the yield on US bonds fell, which is a bad omen for financial stocks,” the analysts of the investment bank BKW wrote in a report.

Fear of a global recession slump and the resulting slump in US corporate earnings this year has reduced the market value of major US companies $ 3.1 trillion in the past ten days.

The National Employment Report contributed to the positive mood ADP who showed that US wage costs rose more than expected in February. The data is seen as a precursor to the broader US job market data coming Friday.

Investors are eagerly awaiting the so-called “Beige Book”, the economic report from the US Federal Reserve. This should provide information on the effects of the corona virus on the domestic economy.

More: The turnaround on global stock exchanges is long overdue

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Dow Jones loses more than 1,000 points

new York The growing number of corona cases outside of China has also prompted US investors to withdraw from the stock market on a large scale. The Dow Jones Index of Standard Values ​​temporarily lost more than 1000 points on Monday. An increase in corona diseases has been reported, particularly from Italy, South Korea and Iran, which has fueled investors’ fear of a pandemic with major negative consequences for the global economy.

Overall, the number of cases has not increased dramatically, said Art Hogan, chief market strategist for New York investment advisor National Securities. But geographically there is a change. “The market is trying to predict how big it will be worldwide and when it will peak.”

The Dow lost 3.6 percent to 27,961.01 points. The technology-heavy Nasdaq dropped 3.7 percent to 9,221.28 points and the broad S&P 500 lost 3.4 percent to 3,225.90 points. Prices had hit record highs last week. Went in Frankfurt the Dax on Monday four percent lower to 13,035 points from the trade.

In New York, the papers paid off Apple 4.3 percent. According to recent data, smartphone sales in China slumped by more than a third in January. The papers from chip manufacturers like Advanced Micro Devices, Micron or Nvidia became cheaper by up to 8.2 percent. These companies rely heavily on exports to China.

Gold reaches new record high

Concerns about the spreading corona virus caused a sellout in European markets on Monday. The Dax fell below the 13,000 point mark, more than four percent lower than on Friday. Investors therefore switched to supposedly safe investments, gold reached a new record.

As a result of economic concerns, rising US interest rate futures fuel speculation on the stock market that the Fed will cut rates soon. The US interest rate futures peaked on Monday for several months. The Fed funds futures contract, which is linked to the July Fed rate meeting of the US Federal Reserve, signaled a probability of more than 80 percent for a rate cut by then. Investors expect a step down by at least 0.25 percentage points.

The US Federal Reserve cut its key interest rates three times last year. The key interest rate for supplying commercial banks with money is currently in the range of 1.50 to 1.75 percent. Fed chief Jerome Powell had recently told a congressional committee that the virus crisis would likely have some impact on the United States. However, it was still too early to assess whether this could lead to a “fundamental revaluation” in view of the economic outlook.

The US star investor Warren Buffett continues to believe it is lucrative to hold shares despite the recent price turmoil. The outbreak of the corona virus was “terrifying,” Buffett said on Monday on CNBC. “But it shouldn’t affect what you do on the stock market.” Despite the current epidemic, he himself will not sell stocks.

Corona virus cases in Italy cause stock sell-off

The outbreak in Italy and other countries outside of China had triggered a sell-off in the stock markets at the start of the week, and market capitalization in Europe collapsed by hundreds of billions of dollars within a few hours. But investors could not derive long-term market developments from the daily headlines, Buffett said.

However, experts are now skeptical whether the global spread of the corona virus can still be stopped. “The time window for containment of the outbreak is now closing very quickly,” quoted the British newspaper “The Telegraph” Devi Sridhar from the University of Edinburgh, which does research on global public health. Nathalie MacDermott, an infectious disease specialist at the renowned King’s College in London, called the situation in Italy, South Korea and Iran “very worrying”.

The analysts of Goldman Sachs Meanwhile, their US gross domestic product (GDP) estimates have been revised downwards. Instead of annual GDP growth of 1.4 percent in the first quarter, they now only expect growth of 1.2 percent. They referred above all to a slower than previously expected recovery in economic activity in China and to the travel industry.

“The markets have been too carefree with the corona virus”

His Investment company Berkshire Hathaway will “be more willing” to buy shares after a price slide. The 89-year-old pointed out that the US economy was strong, if not as robust as it was six months ago. “If you look at the current situation, you get more for your money on the stock market than on the bond market,” says Buffett.

Focus on individual values:

It went down for Apple with a minus of over four percent. According to recent data, smartphone sales in China slumped by more than a third in January. The papers of Chip manufacturers such as Advanced Micro Devices, Micron or Nvidia dropped by up to 10.6 percent. These companies rely heavily on exports to China.

The victory of the leftist Bernie Sanders at the US area code in Nevada burdens on the stock values ​​of US health insurance. The papers from UnitedHealth. CVS Health and Cigna gave way up to 5.7 percent on Monday.

More: Find out how the leading German index developed on Friday here.

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