US Stock Exchanges Fall Monday – E24

Updated.

This is how the main US indices develop after a quarter of the trade:

• The broad S&P 500 falls 1.4 percent
• Heavy industrial Dow Jones is down 1.6 percent
• Nasdaq technology index falls 0.8 percent

oil fall

The development comes after a very dramatic weekend in the oil market.

After the stock exchanges closed before Easter on Thursday, Opec + has managed to agree on a court deal after lengthy negotiations.

The market is not encouraging.

Oil prices were trading at $ 31.20 a barrel on Monday afternoon, 1.6 percent below Thursday’s levels.

Otherwise, the markets are still characterized by the crown crisis. With more than 22,000 deaths, the United States is now the most affected country in the world.

Last week was one of the best weeks on the US stock exchanges. USA The S&P 500 index rose 12.1 percent, which was the strongest improvement since 1974, according to CNBC.

Great payback for Baker Hughes

The corona crisis and the fall in oil prices are strongly affecting the oil services industry. Giant Baker Hughes is no exception.

In an update on Monday, the Wall Street-listed company announces further steps to meet a lower level of capital and massive amortization:

• Implements a plan that primarily involves $ 1.8 billion in restructuring and impairment costs, or more than $ 18 billion. Most of them are reserved in the first quarter.
• It reduces investment (capital spending) in 2020 by more than 20% of the 2019 budget.
• Expect to score goodwill at around $ 15 billion, or close to $ 155 billion, in the first quarter. Amortization will not affect the company’s cash flow.

The massive hit comes after Baker Hughes conducted a so-called impairment test after market value fell sharply in the first quarter.

It showed much lower values ​​than those published in two of the business areas.