Thursday March 26, 2020
–
Inspired by the Trump administration’s multi-billion dollar aid package, the value on Wall Street is climbing enormously – the Dow is growing by an impressive six percent. He regained 4000 points within a few days.
The recovery in the US stock market continued with momentum for the third day in a row. A billion dollar stimulus package and statements by the US monetary authorities have given further impetus. The willingness to support the economy by all means in the face of the corona virus crisis is enormous. This made investors increasingly confident again.
–
The House of Representatives still has to agree, but this shouldn’t be an obstacle. Of course there are doubts that the sum of all aid programs worldwide can be funded at all. Of the Dow Jones index won 6.4 percent to 22,552 points that S&P 500 increased by 6.2 percent, the Nasdaq composite by 5.6 percent. According to US media, Wall Street has had its best three-day run since 1933. Since Monday, the Dow Jones has gained 20 percent and is heading for its best week in stock market history.
Regardless of the affordability, it also became clear how much the trillion package is needed. Because the weekly initial applications for unemployment benefits literally exploded to just under 3.3 million after 281,000 the previous week. The forecast was only 1.5 million applications. However, there were also fears of the order of 4 million. Given the hire and fire practice in the United States, the data was also seen as a short-term indicator only. Treasury Secretary Steven Mnuchen also expressed hope that government measures would soon lead to recruitment.
Floods of money, weakness in the dollar and the search for security in times of economic crisis fueled the gold price. The troy ounce rose 1.1 percent to $ 1,630. The uninhibited starting of the money printing machines at the central banks should have made it clear to most market participants that their means of payment will soon no longer be worth much. The threat of inflation is playing gold in the cards.
Apple and Boeing asked
The weak labor market data is likely to be a harbinger of falling petrol and oil demand. US light oil of the WTI grade fell 5.6 percent to $ 23.12 per barrel, while European reference oil of the Brent grade lost 2.5 percent to $ 26.71.
–
Among the individual stocks rose Apple by 5.3 percent with the fixed overall market. Before the exchange, it still looked like losses. According to a report, the corona virus pandemic at Apple could delay the planned launch of new models.
The Dow Jones Index was again led by Boeing. The share rose another 13.7 percent, this week the plus adds up to around 90 percent. The stock plunged particularly sharply in the corona crisis after it had previously been under pressure with its problem machine 737 MAX. Now she is benefiting from the hope of government aid.
Micron Technology rose by 5.4 percent. While earnings declined massively in the second quarter, Micron performed significantly better on an adjusted basis and per share than analysts estimated. The outlook was in line with the circulating estimates. Groupon won 14 percent. The online marketplace had announced the departure of the CEO and COO.
– .
