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Wall Street Opens Strengthening Welcomes Vaccines & Profit News Disney

Jakarta, CNBC Indonesia – The United States (US) stock market opened higher in trading Wednesday (5/8/2020), following the positive performance of US issuers amid news of the progress of developing an anti-corona vaccine.

The Dow Jones Industrial Average rose 167.7 points (+ 0.6%) at the opening of the trade at 08:30 local time (21:30 WIB), and 10 minutes later increased to 224.08 points (+ 0.84% ) to 27,052,55. The Nasdaq Index gained 22.54 points (+ 0.21%) to 10,963.71 and the S&P 500 rose 16.42 points (+ 0.5%) to 3,322.93.

Johnson & Johnson announced a US $ 1 billion agreement with the US government to produce 100 million doses of the vaccine he was developing, if indeed it proved effective in defeating the Covid-19 virus.


Disney’s better-than-expected earnings helped restore market sentiment on Wall Street, after the media giant and entertainment vehicle posted a profit of US $ 0.08 per share, or reversed analysts’ forecasts that Disney would lose US $ 0.64 per share.

Do not stop there, Disney also said that it already has 100 million paid customers from streaming services, including Disney +, Hulu and ESPN +. The company’s shares also shot up 6% in the pre-opening session.

The good news neutralizes the bad news from the labor sector. ADP noted that there were only 167,000 new jobs opened in July. That figure is far from the consensus of economists in a Dow Jones poll that expects the figure of 1 million new workers. In June, the employment rate had only reached 2.37 million.

In addition, market participants are watching the results of the non-manufacturing Purchasing Managers’ Index (PMI) survey. Economists in the Dow Jones poll, estimated the number at level 55, is still expansive, but counted down from June’s position of 57.1.

Investors are also monitoring negotiations on new stimulus packages. So far, Democrats and Republicans have agreed on funding lump sum worth US $ 1,200 for unemployment but still have not agreed on the value of unemployment benefits.

“In my opinion the market’s expectation is that we will find the stimulus,” said Lindsay Bell, analyst at Ally Invest CNBC International.

Daily Wall Street Journal on Tuesday reported that US Trade Representative Robert Lighthizer and Chinese Deputy Prime Minister Liu will meet in mid-August to discuss phase one trade agreements between the US and China.

CNBC INDONESIA RESEARCH TEAM

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