Dusseldorf Wall Street rose on Thursday. The Dow Jones index closed 0.1 percent lower at 23,537 points. The S&P 500 gained 0.6 percent to 2799 points. The technology index Nasdaq Composite benefited from new ones Record levels on Amazon and Netflix and rose 1.7 percent to 8,532 points.
Both the shares of the e-commerce group and those of the streaming service are currently the winners of the corona crisis. Both stocks hit new all-time highs on Thursday. Amazon skyrocketed at times by more than six percent to a value of up to $ 2456 and closed more than four percent higher. Netflix peaked at more than five percent to just under $ 450 and ended the day up nearly three percent.
Poor US economic data yesterday caused Wall Street to fall. The Dow Jones index closed the trading day with a minus of almost two percent at 23,504 points, the S&P 500 also closed about two percent lower at 2783 points and the Nasdaq slipped about one percent to 8393 points.
Of a bleak report of last week’s US unemployment rate, which was published shortly before the start of the Washington stock exchange, investors are rather unimpressed this Thursday. According to this, 5.245 million Americans have applied for unemployment benefits in the past seven days.
Initial applications are considered a “real-time indicator” of the economic situation, as they are published with a delay of only one week. Analysts interviewed by Reuters had previously forecasted 5.1 million. Influenced by the corona crisis, more than 20 million US citizens have registered as unemployed within four weeks.
“The decline in economic activity is breathtaking,” said chief economist Joel Naroff from Naroff Economics. Economists estimate that the world’s largest economic power may have shrunk by up to 10.8 percent in the first quarter. That would be the sharpest decline since 1947. As of today, US President Donald Trump wants to present a plan for the exit from the “Great Lockdown” for the domestic economy.
Company figures from the United States show the serious consequences of the corona measures. For example, the stock market fluctuations of the past few weeks have caused a sharp drop in profits for asset manager giant Blackrock.
Net income fell 23 percent year-over-year to $ 806 million in the first quarter, the world’s largest asset manager said on Thursday. Assets under management declined nearly $ 1 trillion to $ 6.47 trillion by the end of March compared to the end of 2019.
The US bank Morgan Stanley also released its quarterly figures this Thursday. Accordingly, profits plummeted by almost a third to $ 1.7 billion. Nevertheless, the financial institution scores well compared to the competition.
Look at other asset classes
Opec announced on Thursday in its monthly report that it was facing the economic consequences of the corona crisis expect a drastic drop in oil consumption by 6.8 million barrels a dayt. The oil cartel predicts the weakest demand for Opec oil in about 30 years in the second quarter.
Accordingly, a little less than 20 million barrels a day are likely to be in demand from April to June. For March, experts expect an Opec production volume of 28 million barrels per day with a possible capacity of around 34 million barrels per day.
The development is thus viewed less pessimistically than by experts from the International Energy Agency (IEA). The interest group of industrialized countries announced on Wednesday that it expects demand to collapse this year by 9.3 million barrels a day for the current year.
However, the two major oil producers Saudi Arabia and Russia have expressed their willingness to intervene in the market in a joint declaration. If necessary, this could be done together with the other states of the Opec + group, according to a phone call between Russia’s Energy Minister Alexander Nowak and his Saudi colleague Prince Abdulasis bin Salman. After a previous dispute between Russia and Saudi Arabia, the large oil producers had agreed on a joint cut in production in order to stabilize the oil price.
The US variety WTI returned to its 18-year low in March and fell 1.5 percent to $ 19.58 a barrel (159 liters). The announced reduction in production by the major exporting countries appears massive, said Carlo Alberto De Casa, chief analyst of the brokerage firm ActivTrades. “In view of the collapsed demand, it just isn’t enough.”
Against this background, the papers of shale oil producers like Marathon, Occidental or Apache slipped between five and ten percent. They suffer particularly badly from the current oil spill because, according to experts, they only work profitably from an oil price of around $ 50.
United Airlines titles lost 11.5 percent. The airline warned that the number of bookings was practically zero, and there was no rapid improvement in sight.
However, there were price increases in the health sector. At the top of the leading index, the papers of the health care provider and health insurer UnitedHealth were up almost six percent on their previous day’s strength. Abbott Laboratories’ quarterly numbers in the S&P 500 rose by more than five and a half percent. They were clearly better than expected, JPMorgan analyst Robbie Marcus said. He continues to see the pharmaceutical company as one of those companies better positioned to face both the Covid 19 crisis and a possible recession.
After a slump of just over 17 percent the previous day, Bed Bath & Beyond has now risen by 18 percent. The retailer, which specializes in kitchen, bathroom and living equipment, presented its quarterly report the day before the market closed. The numbers were better than feared.
With agency material.
More: Here you can find out how the German stock market developed on Thursday.