Big Gains on Wall Street on Optimistic COVID Outlook

Share

Treasury yields edged lower and the dollar was little changed. As the earnings season kicks off this week, traders might get a sense of how bad the hit to global earnings could be as the outbreak upends the global economy. Bank of America Corp. and Citigroup Inc. fell in pre-market trading after following rivals in setting aside billions of dollars for loans likely to sour amid an extreme USA economic shutdown.

Goldman Sachs Group Inc also set aside almost $1 billion to meet future loan defaults, while Citigroup Inc's loan loss reserve grew to almost $5 billion. Consequently, earnings fell sharply to $1.12 billion or $3.11 per share. Hong Kong was up a fraction.

European Union and US federal officials are drafting plans to lift restrictions in an effort to mitigate the economic devastation, even as global virus infections edge closer to the 2 million mark.

Bank of America fell 2.7% in premarket trading as it joined JPMorgan Chase & Co and Wells Fargo & Co in reporting a plunge in quarterly profit and setting aside billions for potential loan losses tied to the coronavirus pandemic.

"It's really going to be about forward guidance", Erin Gibbs, president and CEO at Gibbs Wealth Management LLC, said on Bloomberg TV.

Calgary police officer tests positive for COVID-19
The Calgary Police service confirmed Saturday that one of their members has tested positive for COVID-19. BC has more than 1,400 cases and 55 deaths, and will also receive 250,000 N95 masks.

The S&P 500 Index pared losses after dropping as much as 2.5%, with gains in consumer discretionary, technology and communication companies offsetting declines in other major groups.

Stock futures were roughly flat Tuesday evening as investors considered ongoing signs that coronavirus cases were leveling off in some hot spots in the US, helping brighten the prospects that social distancing measures would be lifted and business activity would eventually resume. NY time.The MSCI Asia Pacific Index fell 0.3%.The MSCI Emerging Market Index declined 0.5%.

The yield on two-year Treasuries gained two basis points to 0.25%.The yield on 10-year Treasuries climbed four basis points to 0.76%.The yield on 30-year Treasuries increased five basis points to 1.39%.

Their shares dropped 1.8% and 2.9%, respectively.

Subscribe now to stay ahead with the most trusted business news source.

Share