Stock Market Update Wednesday, April 29th, 2020
This morning stocks opened strong and never looked back.
There was disappointing data announced pre-market, but index futures actually rallied on the news.
U.S. GDP shrank by 4.8%. This was the biggest contraction since the financial crisis.
But traders expect bad economic news because of COVID-19. The real concern at this point isn’t bad economic data…it’s how LONG the bad economic data will last.
Positive results from Gilead’s (GILD) Remdesivir study were another reason for today’s optimistic mood.
A National Institute of Allergy and Infectious Diseases study showed that the drug met “is primary endpoint.” And Gilead released their results showing that patients improved when taking the drug to treat the virus.
Even Dr. Fauci said that the drug showed “clear-cut” positive effects when treating the virus. Fauci said, “what it has proven is a drug can block this virus.”
In the afternoon, the Fed kept rates unchanged. Fed Chair Jerome Powell said that the economy will likely need more help from the Fed and that the Fed “will do it to the absolute limit of those powers.”
After rallying from the open until early afternoon, stocks chopped around with the Fed Statement and Press Conference.
But a final push into the close helped the major indices finish the day near session highs.
With today’s gains the S&P is on track for its best month since 1974.
Here’s where the major indices ended the day:
- The S&P finished with a 2.7% gain. Up 76 points, the S&P ended at 2,940.
- The DOW ended 2.2% higher. Adding 532 points the DOW closed at 24,634.
- The NASDAQ was up 3.6%. With a 308 point gain, the NASDAQ finished at 8,915.
Crude Oil (CL) snapped a 2-day losing streak. With a 22.3% gain, Crude Oil ended the day at $15.09 a barrel.
Alphabet (GOOGL) jumped 8.9% on earnings. The company’s revenue growth was lower, but not as bad as expected. And YouTube ad revenues were actually better than expected.
Looking at the earnings calendar, Twitter (TWTR), McDonald’s (MCD), and American Airlines (AAL), Altria (MO) are a few of the bigger names that will report tomorrow.
Here is the economic calendar for the week:
Real Time Economic Calendar provided by Investing.com.
This Stock Market Update was provided by Rockwell Trading Services LLC.