Wall Street recovers the bullish tone after the setback of the session on Thursday. The great New York indexes rebound strongly, although not enough to make the blow suffered the day before disappear. The spike in infections and the evidence of a slower than expected economic recovery they stay, but the bargain hunt brings back the green of shopping.
The latest figures from coronavirus infections show that in states such as New Mexico, Arizona and Utah the rate is above 40% and very close to this mark are three other states. A percentage that, according to epidemiologists, is very far from containing infections. And from institutions like the OECD it is noted that a second wave could have deadly consequences also for the economy.
Despite this scenario, investors are knocking on Wall Street again after yesterday’s desperate flight episodes. The Dow Jones it rises more than 3% and peers at 26,000 points by adding more than 800 integers. The S&P 500 earn 2.8% and touch 3,100 points. Meanwhile, the technological Nasdaq it goes back 3% to return to 9,800 points.
This is how Wall Street opens
From a macroeconomic perspective, the focus this Friday is on foreign trade prices, which again show the weakness that the American industry is suffering. While for imports they have grown 1%, above the 0.6% expected by economists, for exports they have only risen 0.5% in May, one tenth less than forecast.
Americans have closely followed the data of the UK Q1 GDP, which has shown a contraction of no less than 24.5% in the interannual rate. And the experts expected a reduction of the environment of 22.3%.
Goldman Sachs cuts Tesla
For the corporate terrain, Tesla one more day is placed under the focus of many investors. In this case, because Goldman Sachs analysts have cut their recommendation on the electric car maker from buy to neutral. And is that its price exceeds $ 950 to which they have improved their target price. However, this reduction does not become an obstacle for your shares to add more than 1% this Friday.
In the opposite direction, the analysts of this same investment bank have raised their recommendation for the shares of General Motors from neutral to buy. And here the movement contributes to a comeback of 6% for its listing.
The shares of Dick’s Sporting Goods, more than 5%. It is the reaction of the market after knowing that resumes its dividend policy, which has been in quarantine for a few months until the company has had enough tools to assess the impact of the coronavirus on its business. Thus, on June 30 they will receive $ 0.3125 per share to those who are investors of the firm at the close of the 22 of this month.
Stronger still, of almost 20%, is the comeback that the actions of American Airlines. The company has updated its business forecasts and now shuffles that in the second quarter the fall in revenue and total capacity remains at 90% and 75% respectively compared to last year.