US stocks gathered Friday between a report saying a Gilead Sciences drug appears to be another effective coronavirus treatment and the White House’s move to start easing recommendations for company closings. Although Gilead warned that anecdotal reports are not proving efficacy, he hopes we will soon have a reliable therapy that led traders in stocks on the last trading day of the week. President Trump has also enacted a process to reopen the economy. This is what happened:
4:20 pm: Market rally by the numbers
- Nasdaq Composite closed 1.38% for the fifth positive day out of six
- Nasdaq is up 6.09% this week for the second consecutive positive week and the third positive week at four
- Nasdaq has fallen 3.59% this year, on track for the worst year since 2008, when it lost 40.54%
- Of record: Nasdaq is 12.1% from its all-time high of 9838.37 as of February 19
- 52-week low on March 23: Nasdaq is 30.44% off the 52-week low of 6,631.42
- NASDAQ 100 closed 1.14% year-to-date, led by Tesla this year at 79.43%, on track for its second best year ever.
- The S&P 500 closed 2.68% for the third positive day out of four
- The S&P 500 closed 3.04% for the third this week positive week in four
- S&P 500 is down 11.03% this year, on track for the worst year since 2008 when it lost 38.49%
- From record: S&P 500 is 15.29% below its all-time high of 3,393.52 as of February 19
- From the 52-week low on March 23: S&P 500 is 31.15% off the 52-week low of 2,191.86
- Dow closed 2.99% for the third positive day in four and the best day since April 8
- Dow closed 2.21% this week for his second consecutive positive week and his third positive week at four
- Dow declined 15.05% this year, on track for worst year since 2008 when Dow lost 33.64%
- Of Record: Dow is 18.01% below its all-time high of 29,568.57 as of February 12
- 52-week low on March 23: Dow is 33.1% above the 52-week low of 18,213.65 – Francolla
4:00 pm: Shares finish high at the week, Dow closes above 24,000
Shares rose in the last half hour of trading to close around session heights. The Dow rose 704 points for a 2.99% profit, pushed higher by Boeing which rose 14.55%. The S&P 500 achieved 2.68%, while the Nasdaq rose 1.38%. All major averages ended the week higher, posting gains for two consecutive weeks for the first time since February. The Dow closed above 24,000 for the first time since March 10. – Stevens
15:43: Stocks jump to session heights
Shares rallied in the last half hour of trading with the Dow leaping over 600 points for a 2.57% gain. The S&P 500 and Nasdaq were up 2.3% and 1.1% respectively. All three are on track for their second consecutive week of winnings. – Stevens
3:19 pm: The Fed is once again cutting the number of bonds it buys
The Federal Reserve cuts bond purchases as recent transactions have helped open up a market that has been under severe pressure. According to the schedule reported Friday, the New York Fed will buy an average of about $ 15 billion a day next week, compared to the $ 25 billion it made last week. The central bank will also scale down its mortgage-backed securities business from about $ 15 billion this week to about $ 10 billion. Total purchases a week before the recent cuts were about $ 50 billion. Due to purchases in the most recent round, the Fed’s positions on its balance sheet have passed $ 6.4 trillion, up more than $ 2.1 trillion since early March. – Cox
3:02 pm: Last Trading Hour: S&P 500 goes for the first back-to-back weekly profit since February
With about an hour to go during the trading session, stocks had risen across the board in hopes of a possible coronavirus treatment. The S&P 500 and Dow were up more than 1% each, while the Nasdaq was trading 0.3% higher. Thanks to Friday’s gains, the S&P 500 rose 1.9% this week and on track for the first weekly profit since February. – Imbert
14:51: Profit on track for worst quarter in 12 years
During the first two weeks of the earnings season, corporate earnings are on track for their worst quarter since mid-2009. With 9% of the S&P 500, the expected earnings decline is 14.5%, which FactSet says would be the biggest decline since the third quarter of 2009, as the Great Recession came to an end. Turnover is actually doing much better, indicating a profit of 0.6%. Some 66% of companies have outperformed earnings, which is below the normal rate. Virtually no one currently provides forward guidance, with only three companies having a positive outlook and no companies steering lower. The stock market rally over the past three weeks coupled with lower earnings has brought the price-earnings ratio on the S&P 500 to 18.5, not far below mid-February 19 where it traded before a steep slide ended the longest bull market run in history. – Cox
2:50 PM: NYSE advocates lead decliners 5-1
More than five stocks traded higher for each fall on the New York Stock Exchange as the market jumped to end the week. Overall, 2,466 NYSE-listed stocks rose while 445 fell, according to data from FactSet. –Imbert
14:23: Guggenheim’s Minerd: S&P 500 can sink to 1,200
Scott Minerd, Guggenheim’s chief investment officer, said the S&P 500 could drop 57% to 1,200, according to a Bloomberg report. Minerd said unemployment could rise to 17% and shutdowns could continue for the next two years, said the report. On Friday, the S&P 500 was trading at around 2,842, about 30% above its March 23 low. – Stevens
2:07 pm: “weakest” V “recovery forecast I’ve ever seen,” says economist Morgan Stanley
Ellen Zentner, chief economist at Morgan Stanley, said in CNBC’s “The Exchange” that the virus’s continued economic effects will prevent a sharp setback.
‘If you put economists’ forecasts on paper, it looks like a ‘V’. You can’t get around it, ”Zentner said. “But it has to be the weakest ‘V’ I’ve ever seen, and it doesn’t quite reflect how muted growth will be on the other side of this.”
She said that cautious family spending in the face of an uncertain economic environment, as well as restaurants and businesses that are reopening with limited capacity, are hampering the economy’s attempts to rebound. Zentner said the economy could improve quickly.
“We’re going through the worst now, and households are seeing a light at the end of the tunnel,” Zentner said. – Lb
12:55 pm: Stocks that make the biggest moves in the afternoon: Boeing, Gilead, Apple and more
Check out the companies making headlines on Friday afternoon:
Boeing – Shares of the space agency rose by more than 12% after Boeing said it would resume production of commercial aircraft at its Seattle plant as early as Monday, with a social distance policy. The aircraft manufacturer’s shares lost 54% this year.
Apple – The iPhone maker fell more than 2% after Goldman Sachs cut shares to a sales score. The company lowered its forecast for Apple for the third time since February, saying that it “now models a deeper reduction in unit demand through mid-2020 and then a less profound recovery until early 2021.” Goldman also lowered its price target from $ 250 to $ 233, which is about 16% lower than where the stock is currently trading.
Read the rest of the companies making headlines here. “Franck
12:10 PM: Charlie Munger says companies don’t call Berkshire for rescue investments
Charlie Munger, Berkshire Hathaway vice president and longtime business associate of Warren Buffett, said the conglomerate’s phone was not ringing with business leaders begging for rescue capital as the corona virus outbreak has left everyone in shock and confused as to what their next step will be. “Everyone’s just frozen,” Munger said The Wall Street Journal. Take the airlines. They don’t know what the hell they’re doing. ” – Imbert
12 noon: Markets at noon: Stocks jump up to end the week hoping for coronavirus treatment
The main averages rose sharply around noon, as a report on a Gilead drug raised hopes of a possible coronavirus treatment. The Dow was trading about 400 points higher, or 1.7%. The S&P 500 achieved 1.5% while the Nasdaq rose 0.6%. Friday’s earnings set the S&P 500 on track for its first back-to-back weekly increase since February. – Imbert
11:45 AM: Hospital admissions continue to drop in New York
The total number of patients hospitalized with coronavirus in New York fell again on Thursday, said Governor Andrew Cuomo, the fourth day in a row from net declines. The number of new patients entering hospitals has remained the same at about 2,000 a day, Cuomo said. New York suffered 630 deaths on Thursday, comparable to the number of deaths in the previous days. – Lb
11:20 am: Drug stocks are reaching new highs
Several pharmaceutical and medical stocks hit new 52-week intraday highs on Friday morning. Incyte rose to its highest level since January 2018 and Regeneron reached its highest level since December 2015. Abbott Labs, Centene, Eli Lilly and Vertex Pharma have reached new record highs. – Francolla, pounds
11:05 am: Stocks fade in late morning trading
The stock market gave up some of its early gains as losses in major technical stocks Apple and Amazon weighed on market averages. Dow Jones’ industrial average rose 400 points, or 1.7%, after previously rising as much as 600 points earlier in the session. Shares of technology and entertainment that are the beneficiaries of those at home, including Amazon, Netflix and Activision-Blizzard, have fallen as mounting optimism that medical breakthroughs could reopen the economy. – Lb
10:55 am: Wall Street is raising expectations for Netflix ahead of Friday’s analyst call gains
- Goldman Sachs lowered Apple to sell from neutral.
- BMO raised its price target on Netflix from $ 450 to $ 500.
- Barclays lowered FedEx to the same weight from overweight and UPS to underweight from the same weight.
- KeyBanc lowered Cisco from overweight to industry weight.
- Benchmark upgraded World Wrestling to buy on hold.
- Jefferies upgraded TJX companies to buy from hold.
- Morgan Stanley lowered Chewy to the same weight as overweight.
- Oppenheimer downgraded Comcast to perform better.
- Goldman Sachs downgraded Qualcomm to sell from neutral. – Bloom
10:50 am: Ford warns of a $ 2 billion loss
Legacy automaker Ford Motor said in a securities file that it is expected to report a net loss of $ 2 billion for its fiscal first quarter. CFO Tim Stone said in a press release that the company has enough money to “survive at least at the end of the third quarter without increasing vehicle production and wholesale or financing promotions.” Ford said earlier this week that it expected a sales decline of about 16%. Ford shares rose 2.3% on Friday morning. Wayland, pounds
10:34 am: Fed’s Bullard releases proposal he says would “end the crisis”
James Bullard, president of St. Louis Fed, called Friday to subsidize costs to companies performing coronavirus testing. “That would put an end to the crisis,” the central bank official said during a panel discussion. He also said the unemployment rate could rise to 42% – even worse the previous bleak scenario that St. Louis Fed economists have estimated – but he also said he sees a strong recovery on the other hand. – Cox
10:17 am: Biotechnology has a “global sense of urgency,” said trader Jeff Kilburg
Jeff Kilburg, CEO of KKM Financial, said on Friday that there is a “global sense of urgency” in the biotechnology sector that could lift that group in the near future. “In late March, when you saw a lot of turmoil, we actually bought IBB,” Kilburg said on CNBC’s “Worldwide Exchange,” referring to the iShares Nasdaq Biotechnology ETF. “Some of these names that may have fallen out of favor at the start of an election year … are suddenly back in favor,” Kilburg added. “You see Gilead this morning with a beautiful doll, but at high tide all boats are lifted.” – Imbert
10:05 am: Gap, other retailers are rising in early trading
Gap shares rose by more than 9% in early trading to spike large retail stocks due to optimism about the US economy, which may reopen earlier than expected. Gap’s stock is still down more than 50% this year. Macy’s, Nordstrom and Kohl’s also rose more than the broader market on Friday. – Lb
10:03 am: Dow strives for the best ending in over a month
The Dow’s early gain of over 500 points brings the average of 30 stocks above 24,000. If the Dow makes this profit, it would mark its first close above 24,000 since March 10, when it closed at 25,018. – Imbert
9:53 am: Mall owner Simon Property Group collects 12%
Simon Property Group shares were up the S&P 500 and gained over 12% on Friday. The largest shopping center owner in the United States has been beaten up because of the coronavirus shutdown, as retail is struggling. REIT’s share has fallen by more than 64% this year. But hopes for coronavirus treatment and a reopening of the economy are increasing stocks. – Fitzgerald
9:49 am: Boeing is planning to restart production in Seattle
Boeing shares rose by more than 8% after the space giant said aircraft production would resume at its Seattle facility as early as Monday. The company had suspended production three weeks ago amidst orders at home in Washington state. Friday’s jump set Boeing on its best day since April 6. – Imbert, Josephs
9:35 am: Dow jumps 500 points, S&P 500 adds 1.8% after opening the bell
The Dow jumped 600 points immediately after the opening bell to reduce the win to around 500 points a few minutes later. The S&P 500 rose 1.8% to about 2850 and came just below the 50-day moving average in its rally just after the start of regular trading. Boeing led the Dow higher with a 9.7% pop; Home Depot claimed the number 2 spot and added over 50 points. – Franck
9:20 am: Williams of the New York Fed says the economy will not be at full strength by the end of 2020
New York Federal Reserve president John Williams warned on Friday that the U.S. economy is unlikely to fully recover by the end of 2020. The New York Fed chief said that industries such as construction should return first. “I expect that to bounce back a little faster than maybe some of the other sectors,” Williams told CNBC’s Steve Liesman. “But I don’t see that the economy will be back to full strength by the end of the year.” – Cox, Franck
9.15am: Dow futures show 600 points gain, S&P 500 aims for a 2.2% jump with 20 minutes to open
Dow Industrials futures pointed to a 600 point win with 15 minutes remaining before the opening bell. S&P 500 futures suggested a 2.2% jump, as stocks hit their premarket highs after New York Federal Reserve President John Williams warned that US economic growth is unlikely to return to normal until 2020 turn into. Franck
8:42 am: Moderna shares rise after receiving $ 483 million in federal vaccine funding
Moderna jumped nearly 20% into the pre-market after the biotechnology company received $ 483 million in federal funding to develop a coronavirus vaccine. CEO Stephane Bancel told CNBC’s “Squawk Box” that financing is particularly critical to support manufacturing efforts. “Instead of waiting for the data to scale up with the manufacturing process … we can make as many doses as possible. We do both in parallel,” he said. –Imbert, Stankiewicz
8:12 am: Trump explains the country’s reopening in three stages
President Donald Trump has released a three-step process in which the economy slowly reopens when the corona virus recovery process begins. In an 18-page plan titled “Opening Up America Again,” the White House sees some states come online before others. In the first phase, some companies open up, while vulnerable people continue to take shelter and social distance remains. The second provides for further easing as long as there is no evidence of a recovery in Covid-19 cases. Finally, the plan still requires precautionary measures for vulnerable people, but a more aggressive return to normal for most aspects of the economy. – Cox
7:55 a.m .: Dow futures point to 700 points gain, S&P 500 stands at 2.5% jump on open
Futures contracts linked to the major US stock indices pointed to strong gains on the opening bubble as investors’ optimism about the prospects of a Gilead Sciences drug treatment for the new coronavirus led traders to stocks. Dow Jones’ industrial average was about to rise around 740 points, while S&P 500 futures suggested a population of around 2.8%. – Franck
7:50 am: Remdesivir could give the economy a “fighting chance,” Cramer says
CNBC’s Jim Cramer said on Twitter last night that Gilead Sciences’ remedy, which would be effective in treating coronavirus, would give the economy a “fighting chance.” “Every big S&P name screams, but so do the banks that are so hated …” Cramer said in another tweet. “I think remdesivir would reduce morbidity … which would change how quickly we can open … and what we can do.” Cramer said in late March that investors who gambled that the stock market would continue to fall in the long run are “betting against science.” – Lb
07:47: Gilead skyrockets 12% in premarket trading on hopes of virus treatment
Gilead Sciences rose more than 12% in the premarket session on Friday after a report said the drug Remdesivir was found to be effective in treating the coronavirus. STAT news reported Thursday evening that a Chicago doctor who was treating people with the virus with the drug in a trial said her patients were recovering quickly from severe symptoms. Although Gilead warned in a statement to Reuters that such anecdotal reports do not prove the efficacy of remdesivir, the company said more rigorous studies should provide more certain results by the end of April. – Franck
7.40 am: China’s GDP is falling while the corona virus hampers economic activity
China’s GDP contracted by 6.8% in the first quarter as coronavirus control measures delivered a sharp economic blow. The decline was even worse than the 6.5% forecast, although economists generally cast doubt on China’s official figures. Industrial production declined 1.1%, which was better than the 7.3% estimate, while retail sales fell 15.8% against a 10% forecast. Unemployment for the quarter was 5.9%, compared to 6.2% amid attempts to gradually restart daily activities. However, persistent weak demand shows that “even after the blockages have been lifted, people are cautious about consuming,” Bo Zhuang, China economist at TS Lombard, told CNBC. – Cox
7:37 am: Procter & Gamble sees US sales increase 10% during COVID-19 discontinuation
Shares of the consumer goods giant rose nearly 2% in premarket trading on Friday after a 10% rise in US sales in quarterly earnings. Procter & Gamble said US sales were boosted by consumers stocking staples like toilet paper before the coronavirus outbreak. The company earned $ 1.17 per adjusted share, compared to the Refinitiv estimate of $ 1.13 per share. However, the owner of Vicks lowered his fiscal 2020 earnings forecast, citing headwinds from foreign currencies. – Fitzgerald
7.35 am: Boeing resumes production, stock jumps by 9%
Boeing shares rose more than 9% during Friday’s premarket, after the company said it plans to resume production of commercial aircraft at its Seattle plant as early as Monday. The company is implementing new physical distance measures to prevent the spread of Covid-19. About 27,000 employees will return to work, which is equivalent to about 17% of the company’s workforce. The share will fall by 58% this year. – Stevens, Josephs
07:28: Goldman Sachs cuts Apple to sell, says inventory will drop 20%
Goldman Sachs lowered Apple shares to sell from neutral on Friday, saying it is slowing iPhone demand the longer users stick to phones. “We are now modeling a deeper reduction in unit demand until mid-2020 and then a less deep recovery until early 2021. We also expect some sustained [average selling price] weakness now consumers want to cut back, similar to what we’ve seen in previous downturns, “Goldman analyst Rod Hall told customers. The company said consumer demand would not return until late 2021 and would feel bullish with evidence that it would return sooner Goldman lowered its price target on the stock from $ 250 to $ 233, down nearly 20% from Thursday’s closing price of $ 286.69 per share. Fitzgerald
– CNBC’s Jeff Cox, Fred Imbert, Leslie Josephs, Kevin Stankiewicz and Jesse Pound contributed to the reporting.
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