US Secretary of Commerce Mnuchin is considering shortening market trading due to the corona crisis. Dow Inc. and Wal-Mart are in high demand.
Wall Street closed on Tuesday with profits and is therefore back the enormously high losses from the previous day somewhat stabilized. However, the coronavirus pandemic continues to keep a tight grip on the financial markets.
The Dow Jones Industrial Index gained 1,048.86 points, or 5.20 percent, to 21,237.38 units. Shortly after the start of trading, the US leading index briefly fell below the psychologically important 20,000 point mark, but returned from its daily low of 19,882.26 points. The day before, the Dow had the worst losses since the so-called “black Monday” in 1987. At that time, he had lost more than 20 percent.
The S&P 500 index meanwhile gained 143.06 points, or 6.00 percent, to 2,529.19 points. The Nasdaq Composite Index rose 430.19 units or 6.23 percent to 7,334.78 points.
A sideways movement as progress
“Below 20,000 points, the Dow Jones was finally able to find the long-awaited confident buyer today,” commented analyst Jochen Stanzl from CMC Markets on the current market situation. In the current environment, a sideways movement would be a step forward. At the moment, investors do not know how to reevaluate the economic environment and nobody knows “where the fair value of shares is,” said Stanzl.
Despite these large price fluctuations in the markets due to the corona crisis, the US government wants to keep the stock markets open: However, it is possible that trading hours could be shortened, Treasury Secretary Steven Mnuchin said in Washington on Tuesday. “Americans need to know that they have access to their money.” He spoke to the banks and the New York Stock Exchange. Everyone agreed on the need to keep the markets going.
Data from the US industry
On the economic side, data from the US industry became the focus on the reporting day. The total production of the industry increased in February by 0.6 percent in a month-on-month comparison, the US Federal Reserve announced on Tuesday in Washington. Analysts had expected growth, but only by 0.4 percent on average. US retail sales, on the other hand, fell surprisingly in February, even though the data was collected largely before the US coronavirus crisis escalated.
With regard to the individual stocks, Boeing shares came to the fore. They had slipped to nearly $ 100 at times, eventually closing at minus 124 percent at $ 124.1. On Monday, the US aircraft manufacturer’s titles had lost almost 24 percent, losing around two-thirds in value since the start of free fall just under four weeks ago. The corona virus crisis is having a particularly heavy impact on global air traffic and thus the further demand for Boeing aircraft.
Airlines on the ground
Accordingly, airlines also got under the wheels. Delta Air Lines and United Airlines lost 11.4 and 13.5 percent, respectively. Due to the enormous business damage that the rapid spread of the virus leaves behind, the US airlines want to apply for government aid worth over $ 50 billion.
In contrast, the Dow Jones shares of Dow Inc. were extremely strong. They jumped 20.9 percent on today’s trading day. Retailers were also in high demand on the day of the report: Dow Jones Wal-Mart paper rose by 11.7 percent. The shares of competitor Target also rose significantly by 10.5 percent.
Amazon’s shares gained seven percent. The world’s largest online retailer wants to counter a sharp increase in orders due to the spread of the corona virus with a recruitment campaign. The company announced on Monday that it would hire 100,000 additional full-time and part-time warehousing and delivery workers in the United States to meet increased demand.