AFP interview as of 5/26

Wall Street rises with economic hopes; bank stocks jump
May 28, 2020
Peter Cardillo speaks on the opening of US markets & it’s affect
May 29, 2020

AFP interview as of 5/26

Wall Street welcomes gradual recovery in economic activity

The New York Stock Exchange rose sharply on Tuesday, showing optimism about the gradual resumption of economic activity, illustrated by the partial reopening of the Wall Street prosecution, and the progress of research on a vaccine against Covid -19.

Its flagship index, the Dow Jones Industrial Average, rose 2.17% to 24,995.11 points, while the Nasdaq, with a strong technological coloring, took 0.17% to 9,340.22 points.
The S&P 500, which represents the 500 largest companies on Wall Street, gained 1.23% to 2,991.77 points.

During the session, and for the first time since the beginning of March, the Dow Jones crossed the threshold of 25,000 points and that of the S&P 500 above 3,000 points.

A performance quickly welcomed by the American president, who wrote on Twitter: “There will be ups and downs but next year will be one of the best.”

For Peter Cardillo of Spartan Capital Securities, the indices were carried by three elements Tuesday: “the gradual reopening of the economy”, “the hope of a vaccine by the end of the year or at the beginning of” next year “and” the reopening of the New York Stock Exchange floor “.

The American biotech Novavax notably announced Monday the start of a clinical trial of a vaccine against the new coronavirus on 130 volunteer patients with first results expected in July.

The pharmaceutical group Merck said on Tuesday that it had started a collaboration with the International AIDS Vaccine Initiative (IAVI) for the development of a vaccine against Covid-19.

Investors also continued to monitor the gradual lifting of restrictions imposed at the height of the pandemic to limit its spread, symbolized Tuesday by the partial reopening of the famous parquet of the New York Stock Exchange (NYSE).
New York State Governor Andrew Cuomo, wearing a mask like everyone else in the room, rang the bell to mark the opening of the meeting.

The indicators of the day were for their part rather encouraging.

Consumer confidence improved slightly in May compared to April, according to the Conference Board index, while sales of new homes in the United States picked up slightly, up 0.6% in April.

The Dow Jones was also particularly supported by the jump in bank JPMorgan Chase (+ 7%) after comments by its boss Jamie Dimon saying that at the current price, the action was “very profitable”.

On the bond market, the 10-year rate on the American debt rose, moving towards 2015 GMT at 0.6900% against 0.6591% Friday evening.