Wall Street hesitates, monitoring corporate and oil results

  •   27/04/2020 - 12h20
  •   DEHOUI Lionel

The coronavirus pandemic around the world has caused the downfall of companies in all industries. Oil markets and stock exchanges had enough trouble before they collapsed.

Wall Street hesitates, monitoring corporate and oil results
Image copyright: krispdk - Flickr

A slight increase at the opening

On Friday, the New York Stock Exchange's flagship index, the Dow Jones rose 0.16% to 23553.01 points. The Nasdaq index, after opening higher, lost 0.07% to 8489.05 points while the S&P 500 gained 0.16% to 2802.41 points. It should be remembered that last Thursday, the New York Stock Exchange closed not far from equilibrium. Market players, especially investors digesting the economic values of the United States and an improvement in the barrel price could support the results.

 

Some results

In addition, bad news about the treatment of coronavirus caused some movement in the market. Wall Street's flagship index was up 0.17%. In contrast, the Nasdaq lost 0.01%.

After the close last Thursday, several major companies released their first quarter 2020 results. The American company specialized in microprocessors (Intel) lost 2.78% while Express gained 0.35% and Verizon regressed by 0.98%.

Intel's estimates for the second quarter of 2020 will not be encouraging. No information is provided on annual forecasts for 2020 due to the critical state of the U.S. economy. Verizon, the telecommunications specialist, publishes a surprising profit: above estimates, but with a turnover that unfortunately turns out to be below expectations.

 

The price of a WTI barrel

The various indices strengthened thanks to the rise in the price of the American barrel WTI (West Texas Intermediate) for the third successive time. It should be noted that last Monday, the price of the American barrel fell to negative for the first time in history. This week, the oil market has been much disrupted because of this fall of the American crude oil which led it into a plunge.

 

A new support plan

A new plan of support is accepted Thursday by the American Congress worth $483 billion. This plan aims to support the American economy and health structures in the face of the coronavirus crisis, but in particular screening. The impact of the health crisis has enormous consequences on the US economy. For example, consumption of durable goods fell by 14.4% last month.

 

Other information

The Fed is continuing its analyses with the aim of combining the consequences of the crisis with the past and restoring investor confidence. However, it is possible that market trends could change at any time as a result of confusing announcements. The bond market in the United States was rising slightly. The 10-year rate rose to 0.6071% from 0.6015 on Thursday.

The JP Penny company is coming out with a loss of 6.84%. It has begun discussions with its creditors with a view to finding a loan that will enable it to cope with the crisis. The largest increase in the Dow Jones index came from Major ExxonMobil, which gained 1.70%. Chevron and ConocoPhillips were up 0.52% and 0.80% respectively.