NEW YORK | The New York stock Exchange ended Friday on a positive note, a week marked by company results mixed, disappointing indicators and the yoyos of the oil, but also by an overwhelming government support and hope to see the economy re-open soon.
Its index feature, the Dow Jones Industrial Average, has risen from 1.11 % to 23 775,27 points, and the Nasdaq, to the strong staining technology, from 1.65% to 8634,52 points.
The expanded index S&P 500, which represents 500 largest companies of Wall Street, has risen from 1.39 % to 2836,74 points.
On the week, the Dow Jones fell 1.9 %, the Nasdaq 0.2 % and the S&P 500 1.3 %.
The indices have hesitated at first Friday on which direction to follow before recovering gradually.
“There is not really a particular factor explaining this increase,” said Karl Haeling of LBBW.
The advance of the indices is primarily due, according to him, the fact that the u.s. central bank to support the economy, injecting hundreds of billions of dollars on the markets. Some investors have withdrawn a lot of money off the table these last few weeks take the opportunity to buy back a few shares.
The us president, Donald Trump has also enacted Friday a new aid plan of nearly $ 500 billion to support the economy, hit hard by the restrictions imposed by the outbreak of coronavirus.
In this regard, the indicators have continued to reflect the damage: the durable goods orders in the United States were down 14.4% in march under the effect of the fall in activity, while consumer confidence has fallen according to the index of the University of Michigan.
The services of the budget of the Congress, CBO estimated that the gross domestic Product of the United States is expected to decline by around 12 % in the second quarter compared with the first and that the unemployment rate is expected to climb to nearly 14 %.
But for Mr. Haeling, ” the market has probably already built all the bad news and has been done with the idea that the second quarter will be terrible “. The question now is rather to know when the economy revives “, he adds.
Investors to monitor in this regard the us State of Georgia, who made the gamble to re-open some of the shops despite the outbreak of coronavirus. Several big names of the ratings have also unveiled their quarterly results after the close Thursday, which the giant of Intel microprocessors, the issuer of American Express credit cards or the phone operator Verizon.
The indices have also been supported to some extent by the increase in crude prices for the third session on, at the end of a hectic week on the oil market which has seen the price of a barrel of american WTI switch for the first time below zero Monday.
Trump could sign a new aid plan of nearly $ 500 billion
The us president, Donald Trump has issued on Friday a new aid plan of nearly $ 500 billion to support the economy, hit hard by the restrictions imposed by the outbreak of coronavirus.
“This is good news for small businesses and this is good news for the workers “, he said during a signing ceremony in the oval Office in the aftermath of the adoption of the text by the Congress.
This new plan of using 483 billion is intended to support the business, but also the hospitals in the united states, in the face of the pandemic, have had to postpone some operations and benefits non-priority, and thus depriving revenue.
This plan has precisely 320 billion dollars for small and medium-sized companies, 60 billion of lending to other affected areas such as agriculture, 75 billion dollars in aid to hospitals and $ 25 billion to enhance the detection of the coronavirus.
The new funding for SMES will add to 349 billion already spent to support companies. This envelope had been approved at the end of march as part of a plan to revive the historic 2,200 billion dollars.
In a press release, the u.s. Treasury has clarified that applications for loans under the program of preservation of wages (PPP) will resume from next Monday.
“The PPP has supported more than 1.66 million small businesses and secured more than 30 million jobs for us workers “, commented on the us secretary of the Treasury Steven Mnuchin and the director of the independent agency in charge of the small business (SBA) Jovita Carranza, quoted in the press release.
With the additional funds granted by the Congress, tens of millions of additional workers will benefit from this assistance, they also added.
The most affected country in the world by the pandemic, the United States have taken Friday the milestone of 50 000 dead.