According to the results of yesterday’s trading session, US stock indices are growing steadily. It is believed that the market participants’ hope for the early removal of the restrictions caused by coronavirus was the reason for the growth.
The premonition of an imminent victory over the malicious virus has outweighed even the problems of the energy market. We recall that the market has faced problems regarding the continued peak of oil prices.
Investors’ attention is has been focused on the release of quarterly reports of key companies. By the end of the week, about one and a half hundred reports of the companies that are part of the S&P 500 index will have been released. A dozen corporations from the Dow index will publish financial data too. Such giants as Apple Inc. and Microsoft Inc. are among them.
Experts believe if enterprises open too early, then the economic situation may even get worse, since this step increases the risk of a second wave of mass infections. And this in turn will nullify all efforts to support the national economy.
Some states are preparing to weaken quarantine. For example, Colorado, Mississippi, Minnesota, Montana and Tennessee have granted permission to some businesses to resume work from Monday. The states of Georgia, Oklahoma, Alaska and South Carolina partially have lifted the quarantine.
Objectively, the situation in the USA is far from positive. At the moment, more than a million cases have been recorded; more than 56 thousand people could not cope with the virus. States ranks first in both the number of cases and the number of deaths. Contrary to the statistics, the Secretary of the US Treasury has assumed that the national economy will be able to recover in the third quarter of this year.
This week there will be meetings of the US Federal Reserve and the ECB. We recall that about a month ago, the US Federal Reserve lowered its base interest rate to zero to support the economy in a difficult period. They also announced the launch of a program to buy back bonds in unlimited volumes.
Not all companies faced financial problems during the pandemic. Here are those corporations whose shares grew in price during yesterday’s trading session: MGM Resorts International (+ 9%), Carnival Corp. (+ 9%), Gap Inc. (+ 12.9%), Kohl’s Corp. (+ 17.7%), General Motors (+ 2.3%).
The shares of Hertz Global Holdings Inc. grew significantly yesterday. The increase has amounted to 20.7%. We recall that the company is engaged in a car rental service. The active measures taken by management to restructure the corporation’s debts caused the growth.
The high-tech giant Apple did not surprise investors. Their shares have grown in price by only 0.1% because they postponed the plans to increase the production of new flagship smartphones.
Frankly speaking, Boeing is having a hard time. The company’s capitalization has decreased by 0.2% over the day. The head of the concern has made a public statement, expressing the idea that” the industry’s prospects are sad; it will be able to recover in three years at best.”
The capitalization of Tesla Inc. has pleased the investors with the increase of 10.2%.
The daily increase in US indices has amounted to:
- Dow Jones Industrial Average Index has grown by 1.51%;
- S&P 500 – by 1.47%;
- • Nasdaq Composite is up 1.11%.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group