Dow Jones headed towards its best week ever. – Idaho Reporter


Dow Jones headed towards its best week ever.

First sightings of successful treatment options for corona infections have given the US stock exchanges a further boost at the start of the week. The leading index Dow Jones Industrial rose on Monday to its highest level since the end of February, when the corona stock market crash began. It closed with a gain of 1.35 percent to 28,308.46 points. For the market-wide S&P 500 (INDEXSP: .INX) it went up 1.00 percent to 3431.28 points, which is just below the record high it reached shortly before the market closed.

US President Donald Trump had issued an emergency permit for the treatment of corona patients with blood plasma that contains antibodies against the virus. The US government is also considering the approval process for a corona vaccine candidate from the British-Swedish pharmaceutical company Astrazeneca to accelerate.

Dow Jones Industrial Average (INDEXDJX: .DJI) stock market index is likely to gain further ground on Tuesday thanks to optimistic signals from the trade agreement between the USA and China. In addition, as on Monday, the hope of medical success in the fight against the coronavirus should keep investors in a buying mood. In addition, the latest economic data showed that economic output in Germany fell a little less sharply than initially calculated during the Corona crisis.

Despite the existing tensions, the US and China are sticking to the implementation of their agreement on the first phase of the first phase of their trade war, which they reached more than six months ago. After a phone conversation between US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin with China’s Deputy Prime Minister Liu He on Tuesday night, Washington said that both sides were seeing “progress”. The Chinese side spoke of a “constructive dialogue”.

“The phase 1 deal is on track,” stated market analyst Thomas Altmann from QC Partners. Apparently the US is satisfied with the increased Chinese orders for US products. There is no longer any question of Washington’s regular threats to withdraw from the interim trade agreement. “Despite all the euphoria, investors shouldn’t forget one thing. The existing agreement is more of a ceasefire than a trade agreement. Most of the tariffs are still in force,” warned Altmann.

On the other side, three companies in the Dow Jones Industrial Average index, are exchanged in a week before trading opens. The software expert and SAP-Rival Salesforce replaces the oil company ExxonMobil , as the index provider S&P announced on Monday evening. The company is currently the oldest member of the DJIA.

The biotech group Amgen also replaces the pharmaceutical giant Pfizer . In addition, the conglomerate Honeywell is moving in the index. For this, the arms and technology group Raytheon Technologies, which was only recently created through a merger, has to give way.

As a justification, the index provider referred to Apple’s stock split, which came into effect at the same time . This will reduce the weight of the DJIA in a major global index. The change counteracts this. It also said that the DJIA would be better diversified by removing overlapping companies and adding new types of business. This will represent the American economy better.

Share your thoughts

Theme by Anders Norén