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Last week, Dow Jones produced an increase of more than 12 percent, the strongest increase in a week since 1938. After Monday’s decline, stock markets rose sharply on Tuesday night.
Dow Jones finished 2.4 percent, the S&P 500 was up 3.1 percent, while the Nasdaq was up 4.3 percent.
The stock market boom came despite the IMF’s warning in an earlier report that the world economy is facing its worst recession since the Great Depression of the 1930s.
Accumulate reserves
Big bank JP Morgan Chase released first-quarter figures on Tuesday, and the figures showed a profit that was well below analyst expectations, despite the bank’s earnings so far having been sustained during the crisis of the crown.
The stock ended 2.7 percent.
The report reports that earnings per share in the first quarter were $ 0.78, down from $ 1.87 in the same quarter last year.
JP Morgan now builds its reserves at $ 6.8 billion, raising reserves to $ 8.3 billion from $ 1.5 billion a year ago.
In the quarterly report, the bank writes that this reflects the deterioration of the macroeconomic environment as a result of the impact of the corona crisis and the continued pressure on the price of oil.
Increased demand for medicines.
Among the companies that perform well in commerce today are Home Depot, Apple, and Johnson and Johnson. Apple finished with 5.1 percent and, along with Home Depot (+ 4.2 percent), contributed nearly two-thirds of the movements in the Dow index today, according to Marketwatch.
Johnson & Johnson’s first-quarter earnings increased as the coronavirus health crisis fueled demand for over-the-counter medications, despite the fact that they said they would see a decline in sales this year, as the company also faces a increased spending in response to the pandemic.
Johnson & Johnson rose 4.5 percent.
Tesla goes against the grain
Electric car and battery maker Tesla rose 13.6 percent on Monday. On Tuesday, they continue to rise, increasing another 9 percent.
Tesla is asking some of its owners for rent reductions, according to The Wall Street Journal. The automaker is trying to save money as the virus outbreak halted most of the business. Tesla shares are still rising after Credit Suisse updates the shares, saying the automaker wants to step up management of electric cars.
Tesla’s stock also fell sharply from mid-February to mid-March, when more than half of the share’s value was lost. Since then, Tesla’s shares have been sharply upward corrected, from $ 360 to $ 660.
Extreme increase in high yield funds.
On Thursday, the US high-yield market. USA It experienced its biggest increase in two decades. The largest high-yield index funds rose above seven percent, which is extremely powerful for the bond market.
The reason should be that the US central bank. USA Now you are starting to buy the best part of the high performance market.
The central bank can spend up to $ 750 billion on bond purchases, and a third of that can go to the secondary market.
The drop on Wall Street on Monday, with the European stock exchanges closed, came despite a landmark agreement between oil-producing countries, Opec +, to significantly cut output.
Both the Dow Jones and S&P 500 finished just over one percent, having picked up something in the end. Nasdaq stopped a little.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We want you to share our cases using a link, which links directly to our pages. Copying or any other use of all or part of the content may only be made with written permission or as permitted by law. For more terms see here.
