Continued Optimism About Reopening May Lead To Strength On Wall Street

[ADVFN]( [WorldDaily Markets Bulletin]( [Daily world financial news]( [Tuesday, 12 May 2020 10:57:25]( [Monitor]( [Quote]( [Charts]( [News]( [Toplists]( [Boards]( --------------------------------------------------------------- US Market Bitcoin [Bitcoin]( DAX [DAX]( Dow Jones [Dow Jones]( Nasdaq [Nasdaq]( The major U.S. index futures are currently pointing to a higher open on Tuesday following the mixed performance seen in the previous session. The markets may continue to benefit from recent upward momentum, which has helped to lift the major averages well off their March lows. The tech-heavy Nasdaq has shown a particularly strong upward move, soaring 34 percent since hitting its lowest closing level in over a year on March 23rd. The Nasdaq has climbed firmly into positive territory for 2020 in recent sessions and is currently just 6.6 percent below the record closing high set in February. Stocks have recently benefitted from optimism about the U.S. reopening following the coronavirus induced economic shutdown. Hopes for a quick economic recovery have helped the markets shrug off dismal economic data as well as recent signs of a second wave of coronavirus infections in countries like South Korea and China. The Nasdaq has benefited from strong gains by tech giants like Amazon (AMZN) and Netflix (NFLX), which have seen their businesses hold up well in the face of the coronavirus pandemic. Not long after the start of trading, Dr. Anthony Fauci and other members of the White House coronavirus task force are due to testify before the Senate Health, Education, Labor and Pensions Committee. Traders may keep an eye on Fauci and the other task force members? comments regarding the risks of reopening the country too soon. In an email to the New York Times reporter Sheryl Gay Stolberg, Fauci said he intends to warn the committee that opening the country prematurely could result in ?needless suffering and death.? After pulling back sharply at the open, stocks fluctuated over the course of the trading session on Monday before eventually ending the session mixed. The tech-heavy Nasdaq surged up to its best closing level in well over two months, while the S&P 500 ended the day nearly flat and the Dow closed in negative territory. The Nasdaq climbed 71.02 points or 0.8 percent to 9,192.34, the S&P 500 inched up 0.39 points or less than a tenth of a percent to 2,930.19 and the Dow fell 109.33 points or 0.5 percent to 24,221.99. The initial weakness on Wall Street came as traders cashed in on recent strength in the markets amid concerns about a second wave of coronavirus infections. Reports of new clusters of coronavirus cases in South Korea and China raised worries about the potential threats of reopening the economy too quickly. Data from Germany's public health agency also indicated coronavirus cases in the country are once again on the rise following recent steps to ease lockdown measures. The concerns waned over the course of the session, however, with traders continuing to express optimism about a quick economic recovery as some states around the U.S. have already begun to reopen. New York Governor Andrew Cuomo revealed today that certain low-risk businesses and recreational activities can reopen statewide beginning May 15. Cuomo also said some upstate regions are ready to move into phase one of the state's reopening plan, which will allow them to resume manufacturing, construction and agricultural operations as well curbside pickup at retail stores. The advance by the Nasdaq partly reflected gains by big-name tech stocks such as Apple (AAPL), Google parent Alphabet (GOOGL), Amazon (AMZN), and Microsoft (MSFT), which all moved to the upside on the day. Steel stocks showed a substantial move to the downside on the day, dragging the NYSE Arca Steel Index down by 4.9 percent. Considerable weakness was also visible among gold stocks, which moved sharply lower along with the price of the precious metal. Banking, tobacco and housing stocks also saw significant weakness on the day, while biotechnology stocks moved sharply higher over the course of the session. Reflecting the strength in the biotech sector, the NYSE Arca Biotechnology Index spiked by 3.7 percent to a record closing high. Healthcare and pharmaceutical stocks also saw notable strength, driving the Dow Jones U.S. Health Care Index and the NYSE Arca Pharmaceutical Index up by 1.8 percent and 1.7 percent, respectively. --------------------------------------------------------------- --------------------------------------------------------------- U.S. Economic Reports CADUSD [CADUSD]( Oil [Oil]( Gold [Gold]( EURUSD [EURUSD]( Consumer prices in the U.S. decreased in line with economist estimates in the month of April, according to a report released by the Labor Department on Tuesday. The Labor Department said its consumer price index slid by 0.8 percent in April after falling by 0.4 percent in March. The drop by the index, which matched economist estimates, reflects the largest monthly decline since December of 2008. Gasoline prices led the way lower, plummeting by 20.6 percent, although the nosedive was partly offset by a sharp increase in food prices. Excluding food and energy prices, core consumer prices fell by 0.4 percent in April after edging down by 0.1 percent in March. Economists had expected core prices to dip by 0.2 percent. St. Louis Federal Reserve President James Bullard is due to speak in a moderated Q&A at the Official Monetary and Financial Institutions Forum webinar at 9 am ET. At 10 am ET, Federal Reserve Vice Chairman for Supervision Randal Quarles is scheduled to testify before the Senate Banking Committee in a hearing on ?Oversight of Financial Regulators.? Philadelphia Fed President Patrick Harker is also due to speak about the COVID-19 impact on key Delaware industries in a conference call with the Delaware State Chamber of Commerce at 10 am ET. At 10 am ET, the Treasury Department is scheduled to announce the results of its auction of $32 billion worth of ten-year notes. Cleveland Fed President Loretta Mester is due to give brief remarks and participate in a moderated Q&A at a Chicago CFA Society virtual event at 5 pm ET. --------------------------------------------------------------- --------------------------------------------------------------- Stocks in Focus Shares of Novavax (NVAX) are spiking in pre-market trading after the biotechnology company reported a narrower than expected first quarter loss and said it will receive up to $384 million in additional funding for its experimental coronavirus vaccine. International Flavors & Fragrances (IFF) is also seeing significant pre-market strength after reporting better than expected first quarter results. Shares of Simon Property Group (SPG) are also likely to see initial strength after the largest U.S. mall operator said it plans to reopen about half its properties within the next week. Meanwhile, shares of Ingersoll Rand (IR) may come under pressure after the industrial equipment maker reported adjusted first quarter earnings that missed analyst estimates. Event management company Eventbrite (EB) is also likely to move to the downside after reporting a much wider than expected first quarter loss. --------------------------------------------------------------- How To Get An Early Piece Of The Next Big IPO Breakthrough in augmented reality could transform the cosmetic surgery industry. Now accepting Pre-IPO investors, sign up to receive exclusive access. [Click Here to Find Out More..]( --------------------------------------------------------------- Europe European stocks are mixed on Tuesday as fears of U.S.-China trade tensions and worries over a second round of COVID-19 infections kept underlying sentiment cautious. Dismal inflation data from China and mixed earnings updates have also weighed on the markets. While the French CAC 40 Index has fallen by 0.4 percent, the German DAX Index is up by 0.1 percent and the U.K.?s FTSE 100 Index is up by 1 percent. Aegon has moved to the upside after the Netherlands-based insurer said it has maintained a strong balance sheet and liquidity position in these extraordinary times. Vodafone shares have also jumped. The world's second-largest mobile operator maintained its dividend payout after meeting full-year expectations with a 2.6 percent rise in core earnings. Home improvement chain Kingfisher has also surged. The company said underlying sales turned positive in the first week of May as more of its stores re-opened from coronavirus lockdowns. Morrison Supermarkets has rallied as it reported sales growth in the first quarter despite "highly volatile" trading and a worse-than-expected Easter due to the ongoing lockdown in the U.K. Alstom shares have also soared. After reporting a drop in full-year profits, the train maker confirmed its 2022-23 targets of 9 percent adjusted EBIT margin and a conversion from net income to free cash flow above 80 percent. Deutsche Post has also shown a strong move to the upside. The logistics group said it sees signs that business is normalizing in Europe. Electric utility E.ON has also advanced after reporting an increase in first quarter adjusted net income. ProSiebenSat.1 Media shares have soared after U.S. private equity house KKR built a 5.2 percent stake in the German broadcaster. On the other hand, steelmaker ArcelorMittal has declined after announcing a proposed offering of common shares and mandatorily convertible notes for a combined $2 billion. Property developer Land Securities has also shown a substantial move to the downside after reporting a big annual pretax loss. Electric utility Engie has also tumbled. The company said it has fine-tuned its market rationalization target with a decision to exit over 25 countries by 2021. Industrial conglomerate ThyssenKrupp have plunged. After widening its first-half loss, the company warned losses could surge in the third quarter. It said a fiscal third-quarter operating loss of "?1 billion cannot be ruled out.? Insurer Allianz has also fallen after its first quarter earnings fell 29 percent from last year amid turbulence created by the coronavirus pandemic. --------------------------------------------------------------- --------------------------------------------------------------- Asia USDCAD [USDCAD]( USDEUR [USDEUR]( USDGBP [USDGBP]( USDJPY [USDJPY]( Asian stocks declined on Tuesday as tensions soared between Beijing and Washington, and concerns grew regarding a potential second wave of the coronavirus as several countries start to emerge from lockdowns. China, Germany and South Korea have reported new clusters of coronavirus cases, highlighting the potential threat of reopening economies too quickly. Chinese shares ended slightly lower as inflation data missed expectations. The benchmark Shanghai Composite Index slipped 3.25 points, or 0.1 percent, to 2,891.56, while Hong Kong's Hang Seng Index tumbled 356.38 points, or 1.5 percent, to 24,245.68. Consumer prices in China were up 3.3 percent year-on-year in April, the National Bureau of Statistics said today. That was beneath expectations for an annual increase of 3.7 percent and down from 4.3 percent in March. On a monthly basis, consumer prices sank 0.9 percent - again missing forecasts for a decline of 0.5 percent after sliding 1.2 percent in the previous month. The stats bureau also reported that producer prices tumbled an annual 3.1 percent compared to expectations for a drop of 2.6 percent and down sharply from the 1.5 percent decline a month earlier. Japanese shares ended marginally lower, a day after Prime Minister Shinzo Abe signaled readiness to compile a second supplementary budget during the current Diet session running through June. The Nikkei 225 Index edge down 24.18 points, or 0.1 percent, to 20,366.48 after recent gains. The broader Topix closed 0.3 percent lower at 1,476.72. Japan has extended a state of emergency over the coronavirus until the end of May, but a review of the decision will be held on Thursday. Toyota Motor fell 2 percent after the automaker said it expects to post its lowest annual operating profit in nine years. Honda Motor shares tumbled 3.5 percent. After the closing bell, the firm posted a 13 percent decline in annual operating profit and declined to give earnings guidance for the current business year. Australian markets fell sharply as fears of a second wave of contagion weighed on the mining sector. The benchmark S&P/ASX 200 Index fell 58.20 points, or 1.1 percent, to 5,403, while the broader All Ordinaries Index ended down 61.80 points, or 1.1 percent, at 5,497.30. Miners BHP, Rio Tinto and Fortescue Metals Group dropped 2-3 percent. Energy stocks had their worst day since May 4, with Beach Energy, Santos, Origin Energy and Oil Search falling 3-4 percent. Healthcare stocks bucked the weak trend, with CSL and Ramsay Health Care gaining 1.8 percent and half a percent, respectively. Amcor rose 1.2 percent after the packaging provider reported a 10.8 percent increase in profit for the nine-month period and raised its full-year earnings growth outlook range. Construction materials supplier CSR surged over 10 percent as it reported a 61 percent jump in full-year profit. Seoul stocks fell as authorities scrambled to track and test thousands of people who visited nightclubs at the center of one of the capital's biggest novel coronavirus clusters. Fears of U.S.-China trade tensions also dented sentiment after U.S. President Trump said he would not engage in any type of renegotiation of Phase One of the China trade deal and wants to see if China can ?live up to the deal they signed? back in January. The benchmark Kospi ended down 13.23 points, or 0.7 percent, at 1,922.17, with heavyweight Samsung Electronics and automakers like Hyundai Motors and Kia Motors falling 1-3 percent. --------------------------------------------------------------- --------------------------------------------------------------- Commodities Crude oil futures are jumping $1.29 to $25.43 a barrel after slumping $0.60 to $24.14 a barrel on Monday. Meanwhile, after tumbling $15.90 to $1,698 an ounce in the previous session, gold futures are rising $5.90 to $1,703.90 an ounce. On the currency front, the U.S. dollar is trading at 107.43 yen compared to the 107.66 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0863 compared to yesterday?s $1.0807. --------------------------------------------------------------- To unsubscribe from this news bulletin or edit your mailing list settings click [here](. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +1 888-992-3836. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49