Hi Everyone,
The stock market finished virtually unchanged, despite a sharp afternoon selloff on Wall Street, as positive earnings surprises boosted investor sentiment in the face of serious economic woes. The Dow was up 39, or 0.2%, to 23,515, the Nasdaq lost 1, or 0.01%, to 8,495, while the S&P 500 fell by 2, or 0.1%, to 2,798. Advancing issues outnumbered decliners by a 7-to-3 ratio on the NYSE, where volume was moderate.
Traders said that bulls scored a major victory this afternoon, since the news-induced selloff could have turned ugly in a weaker market. As one trader explained, “There were plenty of reasons for stocks to decline today, such as Gilead’s (GILD) disappointing announcement and weak economic numbers, so the fact that that Dow closed in the green and the other indices were only slightly lower is a good omen for bulls.”
Intel (INTC, -1.4%) published its first-quarter number after the close today, beating the consensus estimates both on its top and bottom lines, which could lift the Nasdaq and the broader market tomorrow, even though the stock turned lower following the announcement. The shares of both Eli Lily (LLY, +2.5%) and Union Pacific (UNP, +3.8%) gained ground today thanks to the companies’ earnings reports, and the healthcare giant’s stock hit a new all-time high as well. Verizon (VZ, -0.7%) and American Express (AXP, -0.1%) will report tomorrow before the opening bell, and the credit card company’s number could provide vital information regarding the U.S. consumer economy.
Last week, stocks surged higher on a positive early report concerning the trials of Gilead’s Remdesivir, but today, the company failed to confirm the preliminary result. GILD stated that despite the “inconclusive” results, the drug is still likely to be helpful for COVID-patients. However, it’s unlikely to change the course of the war against the virus. The vaccine-trials that started in the U.K. and Germany have a greater chance of success, even though analysts point out that producing enough vaccines, in the case of a positive trial, will still be an enormous global challenge.
Even though a final agreement between the leaders of the European Union (EU) was not likely today, the politicians did not make meaningful progress during the highly-anticipated meeting either. All countries agreed that the EU needs to do more than the already accepted measures, but the financially stronger nations, such as Germany and the Netherlands, seem to be adamant in opposing a common debt issuance or a direct grant to the weaker members. It’s no surprise that the euro hit a one-month low against the dollar today since, without a generous bailout, the EU’s weaker nations could face a deep financial crisis.
As always, have a great evening, stay calm, stay home, stay healthy, do your part to flatten the curve and stay tuned!!!
Joe
