July 9, 2020

Wall Street opens green with slight gains from economic stimulus



Wall Street opened green this Wednesday with a slight rise of 1.19% and about 250 points in its main indicator, the Dow Jones Industrials, after Democrats and Republicans reached an agreement in Washington on the economic stimulus package destined to workers and companies to alleviate the COVID-19 crisis, which is valued at $ 2 trillion.

Five minutes after the start of operations on the New York Stock Exchange, the Dow Jones advanced 245.84 points, standing at 20,950.75 integers, and especially boosted by large listed companies such as Boeing (18.7%) and Nike (7, 44%). The latter yesterday offered better quarterly results than expected.

The selective S&P 500 rose 1.13% or 27.77 points to 2,475.10 and the Nasdaq composite market index, which brings together major technology companies, rose 0.93% to 7,486.93 points.

The New York parquet received a positive understanding between the two main American parties, which occurred at dawn, especially after the law had failed several times in the Senate.

For several days, US lawmakers have negotiated to push through a package of economic stimuli for businesses and workers to alleviate the effects of the COVID-19 crisis on the US economy.

Former Federal Reserve Chairman Ben Bernanke said in statements to CNBC that if during these months of uncertainty due to COVID-19 there is not much damage to businesses and jobs as a result of the mandatory closings, regardless of the duration , there could be a “rapid” rise in the markets once this situation ends.

Markets are looking with concern at the number of those affected both globally and especially in the United States, where more than 55,000 cases of coronavirus have already been registered, according to data from Johns Hopkins University.

However, the general feeling is that the hardest thing has already happened and that the worst possible scenario has already been reached with the falls of the past weeks, so that from now on experts say that slight increases can be expected.

In recent months, and especially since the COVID-19 crisis deepened, senior Wall Street executives such as Amazon founder Jeff Bezos sold $ 9.2 billion in total shares to save potential losses of $ 1,900. millions.

At this time, the yield on the 10-year Treasury bond stood at 0.815% and the ounce of gold, which has soared in recent days, at $ 1,647.60.

Among the 30 listed companies in the Dow, the majority were green but the losses of Travelers (-5.48%) and Walmart (-3.13%) stood out.

All sectors were trading positive except for communications (-1.78%) and finance (-0.79%), while energy (0.99%), industrial (0.74%) led the table. and real estate (0.7%).

In other markets, Texas oil was down 1.33% to $ 23.69 a barrel.

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