Prospect of pandemic easing supports US stock markets

Frankfurt The prospect of loosening corona restrictions in some U.S. states supported prices on Wall Street on Friday. However, due to the overall gloomy economic forecasts, there was no real mood to buy.

The Dow Jones gained 1.1 percent to 23,775 points. The technology-heavy Nasdaq advanced 1.7 percent to 8635 points and the broad S&P 500 increased 1.4 percent to 2837 points. On a weekly basis, the Dow gained about 1.1 percent, the S&P 1.4 percent and the Nasdaq just under 1.7 percent.

Georgia is the first federal state to lift the lockdown, although President Donald Trump did not approve the timing. Governors from Texas, Tennessee, Ohio and Montana, for example, also announced plans to allow business to resume quickly for some jobs.

“We have passed the peak and slowly but surely all countries in which there have been no major cases will gradually reopen,” said Thomas Hayes, managing member of the asset manager Great Hill Capital. “The market sees this as a signal that demand will come back.”

But the prospects for the global economy remain bleak. The US industry is experiencing a massive drop in orders as a result of the corona crisis. Orders for consumer goods such as airplanes and machines dropped by 14.4 percent in March. Economists surveyed by Reuters had expected a drop of 11.9 percent.

In Europe, investors were disappointed by the EU’s contingency plans to combat the aftermath of the pandemic. The Dax lost 1.7 percent to 10,336 points, the EuroStoxx fell by around one and a half percent.

Prices went up and down on the oil market. After a loss of around five percent, a barrel (159 liters) cost $ 16.86, around two percent more than on Thursday. North Sea oil of the variety Brent was quoted at $ 21.60. The price for the main US brand WTI then stabilized around $ 17. Oil stocks like ExxonMobil and Chevron reacted with further moderate profits.

Analysts are not giving the all-clear after the historic price collapse at the start of the week. “The extracted oil simply has no place where it can be stored,” said Bjornar Tonhaugen, who is responsible for the oil market at the Rystad Energy analysis company.

Because of the pandemic, oil demand has plummeted 30 percent. At the same time, the camps are filled to bursting, particularly in the USA.

The unprecedented drop in the price of oil at the beginning of the week is the subject of investigations by the US derivatives regulator (CFTC). “In such a situation, we are looking into all sorts of explanations,” CFTC Commissioner Dan Berkovitz told Reuters on Friday. Because of the extreme price fluctuations, you will take a closer look this time. In the United States, such an investigation can take years.

Focus on individual values

One of the biggest losers in the US stock market was stocks of Boeing, which gave around 6.4 percent. According to a newspaper report, the aircraft manufacturer plans to cut the production of its Dreamliner model 787 in half.

In addition, the planned purchase of the commercial airline division of the Brazilian airline threatens Embraer to burst in view of the rapidly falling market value of both groups. There was a blockade on the $ 4.2 billion deal, and fate is uncertain unless a breakthrough is found quickly, people familiar with the talks said.

Papers from Intel tended to go down in the course, then close 0.4 percent up. The chipmaker had forecast earnings below expectations for the second quarter.

Given the general situation, it is not surprising that the group has also cashed in its annual forecast, the analysts from Cowen and Company judged. However, it is surprising that the structural drivers for growth in the first quarter apparently no longer exist in the second quarter.

The shares of Facebook at the same time increased by 2.7 percent, while the papers from zoom Video communications, which had risen to a record high of $ 181.50 at the start of trading, plummeted 6.1 percent. In view of the rapid growth of video chats in the corona crisis, Facebook does not want to leave this terrain to the rising zoom and counters with its own offer.

The fuss about the Ebola drug Remdesivir from Gilead Science, which is currently being tested in the treatment of lung disease Covid-19, did not go on too long that day. According to the manufacturer, the fact that the administration of the drug in China did not lead to a noticeable improvement in patients, as was reported on Thursday, is not meaningful

The study was terminated prematurely due to low participation and therefore has no statistical value, it said. Gilead’s stock, which had dropped a little more than 4 percent the day before, eventually recovered by 2.4 percent after further losses initially.

The share certificate from Beyond Meatwhich rose for the seventh day in a row. Cooperation with has been particularly strong since Tuesday, after the meat substitute manufacturer had announced Starbucks want to enter the Chinese market. Overall, the paper has risen by almost 40 percent since this announcement, nine percent of which this Friday alone.

After a weaker start, trend-setting ten-year government bonds on the US bond market finally rose by 3/32 points to 108 20/32 points and returned 0.590 percent. The euro was trading around the $ 1.08 mark in US trade and was priced at $ 1.0815 at the close on Wall Street. The European Central Bank set the reference price at $ 1.0800 (Thursday: 1.0772). The dollar thus cost 0.9259 (0.9283) euros.

More: Read here how the German stock market ended the week.

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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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American stock indices start with a plus

Mrelieved US economic data help Wall Street regain prices. The leading indices Dow Jones, Nasdaq and S&P 500 both rose by around one percent at the opening of exchange trading.

Last week, 4.4 million Americans applied for 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 avoided, said Steven Blitz, chief economist for the United States 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.

Las Vegas Sands made a similar statement. The major casino operator 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.

Target’s shares, however, came under pressure, even though the retailer’s online sales almost quadrupled in the past quarter, compensating for the losses from closed stores. However, the company warned of shrinking profit margins due to wage increases for employees. Target shares lost 5.9 percent.

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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.

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Wall Street on the upswing after oil price collapse

Dusseldorf After the turmoil of the past few days, Wall Street is breathing a little more. The prospect of further stimulus measures on Wednesday lured investors back into the US stock market. 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.

Impaired by the historic oil price chaos, the Dow Jones ended Tuesday trading 2.7 percent lower at 23,018 points. The technology-heavy Nasdaq dropped 3.5 percent to 8,263 points. The broad S&P 500 lost 3.1 percent to 2736 points.

“Stock markets seem to think that stimulus from governments and central banks will be enough to neutralize the economic damage caused by the coronavirus pandemic,” said Rabobank economist Teeuwe Mevissen. “As long as this mood persists, economic data don’t seem to matter.”

The Federal Reserve (Fed) pumps trillions of dollars into the financial markets through the purchase of securities. In parallel, the US Senate launched another $ 500 billion stimulus package. That is certainly not the last, said analyst Joshua Mahony from the brokerage IG. “US President Donald Trump has demonstrated his willingness to increase debt in the name of economic growth.”

With the overall market, oil stocks also went on a recovery course. They had come under pressure in the past few days because of the price hype of the US variety WTI. The shares of Exxon and Chevron grew up to 3.4 percent.

Look at the individual values

One of the biggest winners on Wall Street Biontech with a course increase of almost 27 percent. The Mainz biotech company, which works together with the US pharmaceutical company Pfizer researching a vaccine against the lung disease Covid-19 has received approval for a clinical study in Germany.

In the USA, too, the active ingredient will soon be clinically tested after approval. While in the Dow Pfizer shares In line with the market, increasing by 1.8 percent, the Biontech stocks listed on the Nasdaq gained almost 27 percent.

The titles of Chipotle, which rose by twelve percent. The strong online business cushioned the slump in the stationary business of the fast food chain, the analysts of the investment bank BMO wrote. The company, which also has branches in Germany, made a surprisingly high quarterly profit of $ 0.18 per share.

The papers from Netflix On the other hand, they fell by 2.8 percent, although the online video store was able to win twice as many new customers as expected due to the coronavirus restrictions. However, the company warned that the boom would slow down as soon as the restrictions on public life were relaxed again.

But that doesn’t change the positive long-term business prospects, wrote the analysts of the asset manager Cowen. They also considered Q2 user numbers to be too conservative because of the still widespread exit restrictions.

Quarterly numbers, among other things Texas Instruments, AT&T and Biogen in front. The chipmaker had lost less revenue and profit in the first quarter than feared, which gave the shares an increase of 4.8 percent. The telecom company’s papers, on the other hand, lost 1.3 percent after a drop in sales and a withdrawn outlook.

Biogen fell by 9.4 percent to the end of the Nasdaq 100. The biotech company was not only in the spotlight with its quarterly figures, but also with its active ingredient aducanumab against Alzheimer’s.

The application for approval of this product is to be submitted later than previously announced. That raised more questions than answers, complained about RBC analyst Brian Abrahams and immediately lowered the price target for the share.

There was also news too United Airlines and Facebook. The shares of the battered airline dropped 7.2 percent because United wants to raise fresh money through a billion dollar capital increase.

Facebook on the other hand, jumped 6.7 percent after strong losses from the previous day. The network giant wants to penetrate further into India and buys almost ten percent of the Jio Platforms for $ 5.7 billion (€ 5.25 billion). This is the subsidiary of a leading mobile operator.

In the US bond market, ten-year government bonds lost 17/32 points to 108 10/32 points and returned 0.624 percent. The euro was trading at $ 1.0820 at the close on Wall Street. The European Central Bank set the reference price at $ 1.0867 (Tuesday: 1.0837). The dollar thus cost 0.9202 (0.9228) euros

With agency material.

More: Read here what happened on the German stock market this Tuesday.

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Dow Jones, Nasdaq, S&P 500: Oil price chaos leads to further losses on the US stock exchanges

Oil prices have not yet recovered after the historic crash. This puts pressure on the three most important US indices, they close in the loss zone. .

Oil price crash pulls Wall Street down

Wall Street

The corona virus and its further effects on the economy are still the focus of the US stock exchange.

(Photo: AP)

Dusseldorf At the beginning of the new trading week, Wall Street suffered significant losses. The Dow Jones slipped almost two percent shortly after the start of trading to 23,873 points.

The broadly chamfered S&P 500 also fell by around two percent to 2,830 points, the Nasdaq composite index slipped to 8,559 points, making it a good one percent in the loss zone. About an hour later, the prices of the indices recovered only slightly.

Last week, Donald Trump’s exit strategy from the corona crisis and the prospect of a drug against the virus had given hope to US investors. Over the course of the week, the Dow had risen by 2.2 percent, the S&P by three and the Nasdaq 100 index by 6.1 percent.

The slide on Wall Street is due in particular to falling oil prices. Monday is the Prices for US crude oil plummeted. A barrel of West Texas Intermediate (WT) fell up to 40 percent to around $ 11 – the lowest in over 21 years. This continues the drop in oil prices. A decline of almost 85 percent has been recorded since the beginning of the year.

The fall in prices can be justified in particular by the high oil stocks in the USA. In addition, there is the situation with futures contracts for crude oil deliveries. The June contract for the US variety WTI slipped 6.5 percent to $ 27.52 and the May future, which expired on Tuesday, even fell by almost a third to $ 12.41. WTI was last that cheap 21 years ago.

In the wake of another drop in the price of crude oil, the stocks of the oil companies are also coming under pressure. For example, the papers of companies like Apache, Marathon, Hess and Schlumberger dropped by up to 8.3 percent at times, but were able to recover. The titles of the oil multinationals ExxonMobil and Chevron lost around three percent.

In the Medical technology company Co-Diagnostics those responsible are happy about the consistently high demand for corona virus tests. This creates a good mood among investors. The company’s paper rose 15.3 percent to $ 15.10 after gaining 11 percent in pre-exchange US business. The price has roughly doubled since the beginning of the month.

With agency material.

More: Read here how the German stock market developed on Monday.

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Investors are heavily invested, increasing the risk of a setback

Dusseldorf With regard to the stock market, investors are currently asking three questions: Has the worst survived on the financial markets? Is it time to buy the stocks that sold the most? Or should the recovery be used to make the portfolio crisis-proof for the next low blow?

Sentiment expert Stephan Heibel describes the current mood as “wait and see neutral”. The owner of the analysis house Animusx evaluates the weekly Handelsblatt survey on stock market sentiment, called Dax-Sentiment, among more than 3500 investors.

As long as the facts about the future easing measures and the economic effects do not become clearer, Heibel’s view should not see any major swings in one direction or the other: “Downside potential threatens during the reporting season, because company numbers will become the extent of the economic trend in the coming days and weeks Show damage to the quarantine measures. “

However, the sentiment analysis this week does not provide a clear recommendation to investors’ questions. “Gains in prices such as the opening on today’s trading day are an opportunity to sell one or the other position in the portfolio in order to have enough cash for subsequent purchases in the event of a setback,” says Heibel.

After the panic mood in March followed the bargain hunters, who are currently taking their speculative profits with them. Now the Dax has left its sales level again. If prices continued to rise, individual stocks and sectors would again be overvalued in Heibel’s view.

Among other things, the investment quota is queried in his more extensive Animusx sentiment survey. This rate is already back at a relatively high level. Many investors are already heavily invested again, as the overbought constitution of the US stock barometer S&P 500 shows, which has risen too high too quickly. “This means that the possibility of a continuation of the recovery rally is limited in the short term, the risk of a setback is greater,” explains Heibel. Because if many investors are already heavily invested, few potential buyers remain.

Results of the current survey

Overall, the mood among investors is divided: relief on the one hand that Chancellor Angela Merkel took the direction of “easing” on Wednesday. Disappointment on the other hand about the moderate steps.

This can also be seen from the current results of the Handelsblatt survey Dax-Sentiment. The panicky mood of the previous weeks has evaporated, but nobody can really be happy about the low stock market level. The short-term sentiment is neutral.

Accordingly, complacency is not yet back. Uncertainty remains a dominant feeling among investors, because politicians have only announced action “on sight”. How long will this exceptional situation last? Uncertainty about the answer to this question continues to cause great uncertainty among shareholders.

Investor expectations are also slipping further in the Handelsblatt survey. With a minus of 0.3 the bears dominate over the bulls for the first time since February. Because the hope for a quick end to the measures has been destroyed. Everyone will have to live with the special situation longer than we previously imagined.

Before that, investors hoped for a short shutdown followed by a violent restart including a backlog that should more than compensate for the losses in the second half of the year.

Since this hope has been destroyed, investors no longer want to invest. The willingness to invest has also decreased further. At the end of March, this sub-area of ​​the Dax sentiment reached a historic high of 5.8, since the start of the survey in September 2014, more investors than ever have been invested. Now this value has dropped to just 1.1.

Look at other indicators

The Stuttgart Euwax sentiment, in which private investors trade, has dropped to minus 11.4. That leads to the conclusion: They are buying more hedging products against falling prices again because they fear a second sell-off wave.

The professionals who secure themselves through the Frankfurt derivatives exchange Eurex, on the other hand, are betting on further rising prices. The put-call ratio has dropped to 0.8 and the average is 1.5. Institutionals have bought significantly more calls.

In the weeks before, the hedging positions of investment professionals in the United States were significantly larger than in Germany. But the put-call ratio of the Chicago futures exchange CBOE is currently returning to a normal level.

The investment ratio in US fund manager shares rose only marginally from 27 percent to 29 percent and remains at a historically low level. US private investors remain pessimistic, the bull-bear ratio is minus eight percent.

The “fear and greed indicator” of the US stock markets, calculated on the basis of technical market data, now shows a neutral state of the markets again with 44 percent. Other short-term indicators indicate that a correction in the US equity markets is imminent.

More: Exaggeratedly cheap: Analysts now see these 18 stocks as bargains

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Encouraging news supports US stock markets – Dow closes in plus

Dusseldorf The prospect of an end to the economic coma to combat the corona virus gives US investors hope at the end of the week. The aircraft manufacturer’s announcement BoeingStarting production again and President Donald Trump’s plans to gradually start the economy aroused the buying mood.

The Dow Jones gained 3.0 percent to 24,242 points. The technology-heavy Nasdaq advanced 1.4 percent to 8,650 jobs and the broad S&P 500 rose 2.7 percent to 2,875 points. Over the course of the week, the Dow rose 2.2 percent, the S&P by three and the Nasdaq 6.1 percent. Had in Europe the Dax previously 3.1 percent and the EuroStoxx50 2.4 percent.

“The news of a possible remedy on the same day that Trump presented its opening plans gave investors reason to be optimistic that something like normal will return sometime soon,” said Joshua Mahony, market analyst at broker house IG.

US President Donald Trump presented his exit strategy from the corona crisis on Thursday. The White House plan provides for specific parameters according to which individual states can gradually loosen their restrictions. Germany would also benefit from a plan with clearly defined milestones, comments Handelsblatt author Christian Rickens.

Hope for corona drug

The biggest issue on the markets today, however, was hope for one Corona drugthat the US pharmaceutical company Gilead is currently testing. In a study by the University Clinic in Chicago, remdesivir, which was originally developed against Ebola, led to a rapid reduction in fever and a reduction in the symptoms of the lung disease, so that almost all patients could be discharged in less than a week.

At the end of the month, the group plans to present more comprehensive results from its phase 3 study. It was still too early to draw general conclusions from the success of the treatment. The pharmaceutical company’s papers grew by around eight percent.

However, they act as mood dampers Economic data from China: Economic growth there shrank by 6.8 percent in the first quarter of 2020 compared to the same period in the previous year. Even if China is slowly starting up its economy again after the pandemic, the country will probably not be able to lead the rest of the world economy to recovery, China correspondent Dana Heide analyzes.

The US oil prices broke in on Friday. The price of the US variety WTI temporarily lost almost twelve percent to $ 17.50 a barrel and was thus as low as it was last more than 18 years ago. US inventories were rapidly filling as refineries demand less and less crude oil, says Bjornar Tonhaugen, head of the oil business at Rystad brokerage. Nothing will change for the time being despite the planned relaxation of the virus restrictions.

Focus on individual values

Gilead: The new hope for corona therapy rose on Friday: the shares closed 9.7 percent higher.

Boeing: After a drop of eight percent on Thursday, Boeing papers were also among the winners on Friday. They gained 14.7 percent. Of the airbus-Rivale announced that it would start production again next week.

Titles like were on the sales list Amazon, Netflix or Blue apron with a minus of up to 3.7 percent: The online retailer, the streaming service and the cookbox provider had recently benefited from the exit restrictions. The prospect of easing now moved investors to take profits. Amazon and Netflix both climbed to an all-time high on Thursday.

Apple: Apple was one of the losers with a drop of almost 1.4 percent. The iPhone manufacturer’s share was downgraded by Goldman Sachs analysts from “neutral” to “sell”. The group is likely to suffer primarily from the lower demand for iPhones. The stock loses more than two percent.

With agency material.

More: Here you can find out how the German stock market developed on Friday.

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US investors have hope – Dow is up

Wall Street

The White House’s clear exit strategy creates a better mood on Wall Street.

(Photo: AP)

Dusseldorf The US markets started trading significantly more on Friday, but have since moved more sideways. The Dow Jones index of standard values ​​is 1.64 percent firmer at 24,006 points. At the start of trading, it was still up over 2.3 percent.

The broader S&P 500 is listed at 1.6 percent on 2851 points. Since its low in March, the S&P has made up about 30 percent of the ground. The index of the technology exchange Nasdaq slightly slightly in the minus – it started the trading day with a plus of 1.5 percent.

“The news of a possible remedy on the same day that Trump presented his opening plans gives reason to be optimistic that something like normal will return sometime soon,” said Joshua Mahony, market analyst at broker house IG.

US President Donald Trump presented his exit strategy from the corona crisis on Thursday. The White House plan provides for specific parameters according to which individual states can gradually loosen their restrictions. Germany would also benefit from a plan with clearly defined milestones, comments Handelsblatt author Christian Rickens.

Hope for corona drug

The biggest issue on the markets today, however, is hope for one Corona drugthat the US pharmaceutical company Gilead is currently testing. In a study by the University Clinic in Chicago, remdesivir, which was originally developed against Ebola, led to a rapid reduction in fever and a reduction in the symptoms of the lung disease, so that almost all patients could be discharged in less than a week.

At the end of the month, the group plans to present more comprehensive results from its phase 3 study. It was still too early to draw general conclusions from the success of the treatment. The pharmaceutical company’s papers grew by around eight percent.

However, they act as mood dampers Economic data from China: Economic growth there shrank by 6.8 percent in the first quarter of 2020 compared to the same period in the previous year. Even if China is slowly starting up its economy again after the pandemic, the country will probably not be able to lead the rest of the world economy to recovery, China correspondent Dana Heide analyzes.

The US oil prices broke in on Friday. The price of the US variety WTI temporarily lost almost twelve percent to $ 17.50 a barrel and was thus as low as it was last more than 18 years ago. US inventories were rapidly filling as refineries demand less and less crude oil, says Bjornar Tonhaugen, head of the oil business at Rystad brokerage. Nothing will change for the time being despite the planned relaxation of the virus restrictions.

Focus on individual values

Gilead: The new hope for corona therapy increased on Friday: The papers shot up about eight percent.

Procter + Gamble: The US consumer goods giant has seen the corona pandemic grow its business. The group benefited particularly from strong inventory purchases in the drugstore sector. In the three months to the end of March, revenues increased five percent year-on-year to $ 17.2 billion, the company said on Friday. Profits rose seven percent to $ 3.0 billion. The share was up 1.3 percent on Friday evening.

Boeing: The aircraft manufacturer plans to start production again on Monday. Because of the corona pandemic, production stopped there for three weeks. At the start of trading, the share rose by more than 13 percent.

Apple: Goldman Sachs analysts downgraded iPhone manufacturer’s stock from “neutral” to “sell”. Apple is likely to suffer primarily from the lower demand for iPhones. The stock loses more than two percent.

With agency material.

More: Here you can find out how the German stock market developed on Friday.

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