NEW YORK (Dow Jones) – A friendly start to trading is emerging on Wall Street after the moderate increases on the previous day at midweek. More and more countries are loosening the restrictions that they had imposed in the wake of the corona pandemic and starting up their economies again. At the same time, hope is growing that a vaccine against the corona virus or a means of treating the lung disease caused by the virus Covid-19 will soon be found.
Economic and corporate figures meanwhile show the economic damage that the pandemic has already caused. The fact that in many cases the negative consequences are not as serious as feared also raises hope. The private service provider ADP has published its labor market report for April. Accordingly, 20.2 million jobs were lost in the US private sector last month. Economists had predicted that 22 million jobs would be lost. The data is considered an indicator for the US government’s official labor market report, which will be released on Friday.
GM and Beyond Meat surprise positively
The focus of the stock exchange is on pharmaceutical company Gilead, whose remdesivir has shown promising results in the treatment of Covid-19 patients. Gilead has announced plans to work with pharmaceutical companies in other countries to produce and market remdesivir there as well. The Gilead share shows little change in the pre-IPO, but has risen sharply in recent weeks.
General Motors (GM) presented pre-exchange business figures. Unlike competitor Ford, which reported a loss three times higher than expected last week, GM is pleasantly surprised. Sales and earnings declined, but not as much as feared. The relief from the numbers drives the stock up 6.5 percent in pre-exchange trading.
Figures have also released Walt Disney, Mattel and Beyond Meat. Disney saw a massive drop in profits as the entertainment group’s theme parks had to close due to the Corona crisis. The company’s streaming service grew, but was unable to compensate for the losses. Disney stock drops 1 percent off-exchange.
The share of the toy manufacturer Mattel is down 7.2 percent. The company’s sales declined more than expected in the first quarter, which is why the loss was higher than analysts had forecast.
Beyond Meat, on the other hand, saw unexpectedly high demand for its vegetarian burgers and other meat substitutes in the first quarter. This surprisingly helped the company return to the profit zone. The share price jumps up 10 percent.
Bond prices fall
“Safe havens” are not in demand. Falling prices on the bond market caused the ten-year yield to rise by 2.1 basis points to 0.68 percent. The price for the troy ounce gold drops 0.5 percent to $ 1,699.
Oil prices, which have recently benefited from the increasing demand and decided additional cuts in production, are turning negative. The price of a barrel of US WTI light oil drops 5.8 percent to $ 23.14. The European reference variety Brent is cheaper by 2.1 percent to $ 30.32. The players in the oil market are eagerly awaiting the official data on the US crude oil stocks, which will be released on Wednesday. On Tuesday, the US industry association API reported a slightly stronger increase in inventories than expected.
Weaker economic data from the Euro zone something on the euro. Among other things, retail sales in the EU declined more than expected in March. The common currency temporarily fell from $ 1.0840 to below $ 1.08, and the euro is currently trading at around $ 1.0810. The dollar index rises by 0.3 percent.
The Turkish lira falls to a record low. The course of the Turkish currency is depressed by the fact that the regulatory authority BDDK has announced restrictions on foreign currency transactions by domestic banks.
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US bonds
Maturity yield bp to vt yield vt +/- bp ytd
2 years 0.20 2.4 0.17 -100.6
5 years 0.39 1.0 0.38 -153.8
7 years 0.56 1.4 0.55 -168.8
10 years 0.68 2.1 0.66 -176.1
30 years 1.35 1.8 1.33 -171.5
CURRENCIES last +/-% Wed, 8:40 Tue, 19:18% YTD
EUR / USD 1.0807 -0.34% 1.0819 1.0840 -3.7%
EUR / JPY 114.73 -0.70% 115.12 115.51 -5.9%
EUR / CHF 1.0531 -0.11% 1.0532 1.0546 -3.0%
EUR / GBP 0.8734 + 0.23% 0.8701 0.8717 + 3.2%
USD / JPY 106.18 -0.35% 106.40 106.56 -2.4%
GBP / USD 1.2372 -0.57% 1.2435 1.2434 -6.6%
USD / CNH (offshore) 7.1215 -0.04% 7.1025 7.1199 + 2.2%
Bitcoin
BTC / USD 9,294.26 + 3.59% 9,024.01 8,878.26 + 28.9%
ROHOEL last VT-Settl. +/-% +/- USD% YTD
WTI / Nymex 23.14 24.56 -5.8% -1.42 -61.1%
Brent / ICE 30.32 30.97 -2.1% -0.65 -52.3%
METALLE last day before +/-% +/- USD% YTD
Gold (spot) 1,699.08 1,707.55 -0.5% -8.48 + 12.0%
Silver (spot) 15.02 15.05 -0.2% -0.03 -15.9%
Platinum (spot) 759.10 769.60 -1.4% -10.50 -21.3%
Copper future 2.36 2.34 + 0.9% +0.02 -15.9%
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DJG / cln / gos
(END) Dow Jones Newswires
May 06, 2020 09:00 ET (13:00 GMT)
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