Treatment Hopes Alongside Reopening Plans Boost Stocks

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as treatment hopes alongside reopening plans boost stocks. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

Dow jumps 700 points on hope for a coronavirus treatment, closes at highest level since March

Stocks surged on Friday after a report said a Gilead Sciences drug showed some effectiveness in treating the coronavirus, giving investors some hope there could be a treatment solution that helps the country reopen faster from the widespread shutdowns that have plunged the economy into a recession.

The S&P 500 (SPY) rose +2.68% today. All 11 sectors landed in the green. Gains ranged from +10.62% to 1%, check the sector graph below for specifics.

The Dow Jones index jumped +704 points (+2.99%) to close at 24,242. The Nasdaq climbed +117 points (+1.38%) to settle at 8,650.

Treatment Hopes Alongside Reopening Plans Boost Stocks

Stocks gained ground Friday as a possible drug showed progress in treating the coronavirus.

Boeing shares jumped 14.7% after the airplane maker said it would resume production in the Seattle area as early as April 20. The company also said Friday it would resume operations in the Philadelphia area.

“It’s far too early to signal the all clear, but what this demonstrates is that coronavirus is a health problem that requires a health solution,” said Michael Arone, chief investment strategist at State Street Global Advisors, about the prospects of a coronavirus treatment. “If we can develop a health solution, I think at least from a market perspective, things will rebound pretty quickly.”

Gilead shares jumped 9.7% after STAT news reported that a Chicago hospital treating coronavirus patients with remdesivir in a trial were recovering rapidly from severe symptoms. The publication cited a video it obtained where the trial results were discussed.

Friday’s gain led the S&P 500 to its first back-to-back weekly gains since early February and propelled it above its 50-day moving average. The broader market index climbed 3% for the week while the Dow gained 2.2%. The Nasdaq advanced 6.1% week to date. Through Friday’s close, the major averages were all up more than 25% from their late-March lows.

President Donald Trump said Thursday that “our experts say the curve has flattened and the peak … is behind us.”

He also issued guidelines to open up parts of the U.S. Thursday night, which identifies the circumstances necessary for areas of the country to allow employees to start returning to work. The decision to lift restrictions will ultimately be made by state governors.

Key Takeaways…

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P 500 movers.

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

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4/17/20

S&P 500 Sector Graph

Treatment Hopes Alongside Reopening Plans Boost Stocks

S&P 500 (SPY)

Treatment Hopes Alongside Reopening Plans Boost Stocks

Communication Services (XLC)

Treatment Hopes Alongside Reopening Plans Boost Stocks

Consumer Discretionary (XLY)

Treatment Hopes Alongside Reopening Plans Boost Stocks

Consumer Staples (XLP)

Treatment Hopes Alongside Reopening Plans Boost Stocks

Energy (XLE)

Treatment Hopes Alongside Reopening Plans Boost Stocks

Financials (XLF)

Treatment Hopes Alongside Reopening Plans Boost Stocks

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Real Estate (XLRE)

Treatment Hopes Alongside Reopening Plans Boost Stocks

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

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Utilities (XLU)

Treatment Hopes Alongside Reopening Plans Boost Stocks

S&P 500 Sector Heat Map

 

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