Dow surges 400 points as positive Gilead news lifts hope for coronavirus treatment

[F-22Raptor]

Stocks jumped Wednesday on the back of positive data from a potential coronavirus treatment from Gilead Sciences, while investors digested a sharp drop in U.S. economic activity.

The Dow Jones Industrial Average traded about 420 points, or 1.75%, higher. The S&P 500 gained 2% while the Nasdaq Composite traded roughly 2.7% higher.


A study of Gilead's remdesivir drug conducted by the National Institute of Allergy and Infectious Diseases met its primary endpoint, the drugmaker said, lifting expectations for a potential coronavirus treatment. Gilead also released the results of its own study, which showed improvement in patients taking remdesivir to treat the virus. Gilead shares jumped 3% after a brief halt in the premarket.

"The idea of something that is just given to you in the hospital IV that makes it so that it eliminates the, let's say, the odds of you dying is something that makes us feel like that maybe this is the Tamiflu for this dreaded disease," said CNBC's Jim Cramer. "I think a lot people are going to say open [the economy] up and that's why the market's flying."

Sentiment was also lifted as Alphabet shares gained 9.1% after the tech giant reported a revenue growth decline that was less steep than forecast. The company's YouTube ad revenues also beat expectations.

Other mega-cap tech stocks such as Facebook climbed 4.1%. Amazon gained 0.7% while Apple advanced 2.3%.

The Gilead news along with the strong move higher from Alphabet offset news of a steep drop in U.S. economic activity. U.S. GDP shrank by 4.8% in the first quarter for the country's biggest contraction since the financial crisis.

https://www.cnbc.com/2020/04/28/stock-market-futures-open-to-close-news.html

 

[PakFactor]

The Gilead news saved the market for the time being; but lets wait and see if we could be testing the lows after 2Q and possibly 3Q as well. However, I see the mall owners will get impacted in the next 2-3 years -- before this virus department stores closing down and what not would just accelerate their closing efforts.

I have been thinking about playing sorts of some of the mall owners approx. 2 years out.

 

[Trango Towers]

Facebook apple Microsoft google and one other major all report this week....the rise of the markets is crazy and against all the news.
I keep reading smart money is waiting for another drop. Even vix is at 30. No sense at all

 

[Laozi]

Facebook apple Microsoft google and one other major all report this week....the rise of the markets is crazy and against all the news.
I keep reading smart money is waiting for another drop. Even vix is at 30. No sense at all

When did market made any sense ?

Stop analysing. swim with the tide. enjoy the profits.

 

[PakFactor]

Facebook apple Microsoft google and one other major all report this week....the rise of the markets is crazy and against all the news.
I keep reading smart money is waiting for another drop. Even vix is at 30. No sense at all

Smart Money is sitting on the side lines for example Buffet isn't to keen right now to invest. While their are some good stocks to buy -- I'd hold off a little bit.

Problem is the Fed artificially pumping the market with liquidity they're now saying we can reach $12T as Feds buying up ETFs, Bonds, etc.

Don't forget approx 5-10 companies make up like 20% of the S&P 500 particularly the ones you mentioned if they rise it skews the index.

 

[Village life]

the said drug failed badly in China as per accidentally leaked WHO,UN papers , so this jup and joy is temporary,

 

[PakFactor]

the said drug failed badly in China as per accidentally leaked WHO,UN papers , so this jup and joy is temporary,

Well what's surprising is approx 2 weeks ago this company said it was inconclusive and suddenly it's good? Something just don't add up, I'm not a Pharma Scientist or anything but this don't smell right.

But regardless the pain is going to get more severe from here on out with some permanent job losses, if we are talking about pumping money to keep the market at float what is the cut off?

 

[Village life]

Well what's surprising is approx 2 weeks ago this company said it was inconclusive and suddenly it's good? Something just don't add up, I'm not a Pharma Scientist or anything but this don't smell right.

But regardless the pain is going to get more severe from here on out with some permanent job losses, if we are talking about pumping money to keep the market at float what is the cut off?

to me this pandemic is unique in it's first phase it will consume the surplus economies and reserves of many ,greedy will buy the collapsed institutions in hope that the pandemic will soon be over but if a second wave comes in USA in the coming winter that will be devastating I wish and I hope it doesn't happen , but for moment if I leave materialism a side and explore the spiritual aspects the world is destined to a catastrophy !! look at the leaders they have chosen as their heads of states what a garbage ,,do these leaders have any shame on their bad doings ? not at all ,have they made any policy for global peace and justice ? no ! they are destined to bring down Devine curse on their respective Nations , I think Allah may spare Newzealand because they have a leader with pain in her heart for public that's why they are having less trouble , might be wrong I admit it but this pandemic is a small signal to humans to be humans,

 

[Trango Towers]

Smart Money is sitting on the side lines for example Buffet isn't to keen right now to invest. While their are some good stocks to buy -- I'd hold off a little bit.

Problem is the Fed artificially pumping the market with liquidity they're now saying we can reach $12T as Feds buying up ETFs, Bonds, etc.

Don't forget approx 5-10 companies make up like 20% of the S&P 500 particularly the ones you mentioned if they rise it skews the index.

Well I used to trade full time..then I gave up and set up a company. I sold that company years ago but am in Pakistan
Was looking for a 2nd nose dive which I believe will happen. I think the market is sucking in the chancers. I want to buy good stock for them long term and I believe we will see another dip as this negative sentiment of from economy is set to continue as well as the private bank the fedral reserve continue to print monopoly money and push it into the markets. Only the very rich are winning here. When investing guru's are not investing and sitting on cash I must take note

When did market made any sense ?

Stop analysing. swim with the tide. enjoy the profits.

Your strategy is good for day or very short term trading. Not investing

 

[PakFactor]

Well I used to trade full time..then I gave up and set up a company. I sold that company years ago but am in Pakistan
Was looking for a 2nd nose dive which I believe will happen. I think the market is sucking in the chancers. I want to buy good stock for them long term and I believe we will see another dip as this negative sentiment of from economy is set to continue as well as the private bank the fedral reserve continue to print monopoly money and push it into the markets. Only the very rich are winning here. When investing guru's are not investing and sitting on cash I must take note


Your strategy is good for day or very short term trading. Not investing

Exactly, I have a little bit in the market approx. 20% down from 60% and I'm still pilling on the cash (war chest). I'm hoping after this earnings season is over in another month we can test the bottom.

Happy to see another trader, their was one other brother I was speaking to not long back on this forum, I have to go through my list and find him again.

Were you trading stocks while in Pakistan? What did you mostly deal with options, bond, etc?

 

[Trango Towers]

Exactly, I have a little bit in the market approx. 20% down from 60% and I'm still pilling on the cash (war chest). I'm hoping after this earnings season is over in another month we can test the bottom.

Happy to see another trader, their was one other brother I was speaking to not long back on this forum, I have to go through my list and find him again.

Were you trading stocks while in Pakistan? What did you mostly deal with options, bond, etc?

No bhai. I was trading stocks in the UK. Lived of it for many years. Then stopped and setup a company that allowed me freedom. Alhumdulillah

 

[Laozi]

Your strategy is good for day or very short term trading. Not investing

Which strategy can prevent from losing ones investment if a pandemic breaks out.

 

[Trango Towers]

Which strategy can prevent from losing ones investment if a pandemic breaks out.

Well the answer is in the question

 

[PakFactor]

Well the answer is in the question

Which strategy can prevent from losing ones investment if a pandemic breaks out.

Most likely hedge your positions with options to lessen the blow during a down turn.

 

[Trango Towers]

Most likely hedge your positions with options to lessen the blow during a down turn.

Actually right now I am 100% cash.
What's interesting is
Facebook
Microsoft
Amazon
Are doing very well in this lockdown..strange as they form a major chunk if the S&P 500 along with a couple of others