NEW YORK (Dow Jones) – A slide in late trading brought Wall Street a sharp drop on Tuesday. After the indices had moved within narrow ranges over longer distances, they picked up speed in the late course. The Dow Jones index fell below the 24,000 point mark and practically closed at its daily low. All sectors in the S&P-500 recorded taxes.
Although the easing of the various restrictions triggered by the pandemic is viewed positively, new infections in South Korea, Russia and India continued to increase. The number of infections rose again in some countries that have already decided to ease the situation. There were also fears that the economic recovery could be slower than the markets had hoped for. President Corona’s leading advisor Donald TrumpAnthony Fauci had also warned that the pandemic restrictions in the United States would be eased too quickly. The consequences could be “really serious”.
If you look around the world, there are signs that virus disease will flare up again as countries loosen their economic controls, said Neel Kashkari, president of the Minneapolis Fed. “Unfortunately, the longer this continues, the more gradual the recovery is likely to be,” he added.
“The markets are driven by news of new easing every day,” said Mark Saylor, portfolio manager at Penn Mutual Asset Management. “There are some positive developments from the New York region, but there are incidents in areas that may have loosened too early.” In the state of New York, strict corona restrictions are relaxed for the first time this week. However, the metropolis of New York City, which remains in a state of emergency until at least June, is an exception, said Mayor Bill de Blasio.
The Dow Jones index fell 1.9 percent to 23,765 points. The S&P 500 fell 2.1 percent to 2,870 points and the Nasdaq composite dropped 2.1 percent to 9,003 points. There were 679 (Monday: 1,007) price winners on the NYSE with 2,262 (1,913) losers. 71 (89) shares closed unchanged.
Inflation data from the US only caused minor movements in the currency and gold markets. The numbers showed the sharpest drop in inflation since 2008.
oil increases with hope of funding cuts
Oil prices rose more vigorously. Investors are betting that the gradual opening of the economy will increase demand. At the beginning of the week, Saudi Arabia also informed about increased production cuts that some Gulf states have joined. Now investors are hoping for further price support measures. The price of a barrel of US WTI rose 6.4 percent to $ 25.68, while Brent rose 1.0 percent to $ 29.93.
The dollar fell somewhat after its recent high, partly due to low inflation data. In the late course, however, he was able to make up some of his taxes. The euro was trading at $ 1.0850 in late US trade.
The gold price rose slightly, supported by the weakening dollar, but remained in the range of $ 1,700 per troy ounce. Weak inflation put only slight pressure on the price. After two days of duty trading, the troy ounce rose 0.3 percent to $ 1,702.
The prices on the bond market went up significantly. This was triggered by strong demand for an auction of new ten-year US government bonds. The yield was at a record low of 0.70 percent. The bonds also benefited from the negative development on the stock market, it said. The ten-year return decreased by 4.2 basis points to 0.67 percent.
Grubhub shares are bullish with an alleged Uber bid
The travel agent Uber wants to strengthen the takeover of the food delivery service Grubhub. Uber, operator of its own food delivery service, spoke to Grubhub about a merger, said people familiar with the processes. Both companies are currently negotiating, so the informed people. However, there is no guarantee that an agreement will actually be reached. Grubhub shares were up 29 percent and Uber stocks were up 2.4 percent.
The asset manager Blackrock’s stock suffered from the news that PNC Financial Services Group, the largest single shareholder who currently holds approximately 22 percent of Blackrock and started in 1995, wants to withdraw. Blackrock became 7.8 percent cheaper. PNC fell 2.1 percent.
The Boeing share lost 2.9 percent. For the first time in seven years, the US aircraft manufacturer has fewer than 5,000 orders on its books. This is due to the extensive cancellations for 737 Max aircraft. Boeing received no new orders in April.
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INDEX last +/-% absolute +/-% YTD
DJIA 23,764.78 -1.89 -457.21 -16.73
S & P-500 2,870.12 -2.05 -60.20 -11.16
Nasdaq Comp. 9,002.55 -2.06 -189.79 0.33
Nasdaq-100 9,112.45 -2.01 -186.48 4.34
US bonds
Maturity Yield Bp to VT Yield VT +/- Bp YTD
2 years 0.16 -1.2 0.18 -103.7
5 years 0.32 -3.2 0.35 -160.5
7 years 0.52 -3.3 0.55 -173.2
10 years 0.67 -4.2 0.71 -177.3
30 years 1.37 -4.5 1.42 -169.8
CURRENCIES last +/-% Tue, 8:45 a.m.Mon, 5:20 p.m. YTD
EUR / USD 1.0850 + 0.41% 1.0817 1.0811 -3.3%
EUR / JPY 116.30 -0.03% 116.30 116.35 -4.6%
EUR / CHF 1.0519 + 0.02% 1.0517 1.0518 -3.1%
EUR / GBP 0.8836 + 0.86% 0.8771 0.8764 + 4.4%
USD / JPY 107.19 -0.44% 107.38 107.63 -1.5%
GBP / USD 1.2279 -0.45% 1.2331 1.2335 -7.3%
USD / CNH (offshore) 7.1067 + 0.00% 7.1046 7.1081 + 2.0%
Bitcoin
BTC / USD 8,826.51 + 2.99% 8,751.76 8,908.76 + 22.4%
ROHÖL last VT-Settl. +/-% +/- USD% YTD
WTI / Nymex 25.68 24.14 + 6.4% 1.54 -56.8%
Brent / ICE 29.93 29.63 + 1.0% 0.30 -52.9%
METALLE last day before +/-% +/- USD% YTD
gold (Spot) 1,702.27 1,697.35 + 0.3% +4.92 + 12.2%
Silver (spot) 15.49 15.60 -0.7% -0.11 -13.2%
Platinum (spot) 762.90 761.00 + 0.2% +1.90 -20.9%
Copper future 2.35 2.38 -1.3% -0.03 -16.3%
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DJG / DJN / ros
(END) Dow Jones Newswires
May 12, 2020 16:28 ET (20:28 GMT)
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