- Stock markets point to recovery
- S&P 500 hits 5% upper trading limit
- Mallinckrodt (MNK.US) stocks rose 16%
After yesterday's dramatic sale off, markets are trying to recover some losses. Trading of futures contracts has been halted today again when the S&P 500 reached the upper trading limit of 5%.
On Thursday due to investor panic associated with the spread of the coronavirus, stock markets experienced significant declines which completely paralyzed investors. The Dow Jones plummeted more than -10% even though the FED announced further stimulus measures, pumping another $ 500 billion in to the markets. Today morning however market mood has calmed down. The US stock futures opened green and continue to rise. European indices are trading higher today thanks to rate cuts and short-selling bans. President Trump announced that coronavirus testing will soon take place in the US, however did not provide any more details. The US president also spoke unfavorably about the Centers for Disease Control and Prevention which in his opinion have a testing system inadequate for a large scale pandemic.
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Open account Try demo Download mobile app Download mobile appInvestors should remember that risk aversion still dominates the markets, and any new headlines related to the spread of the epidemic may cause further declines. Preliminary University of Michigan sentiment data is the main macroeconomic release scheduled for today. If the reading shows a drop in private consumption then this may lead to further strengthening of the US dollar.
S&P 500 (US500) after yesterday’s sharp decline managed to found some support at 2568.2 pts level and at the moment is trying to recover recent losses. If the upward movement continues then the market might test the resistance level located at 2722.6 pts. Source: xStation5
Mallinckrodt (MNK.US) share price soared 16% in premarket trading as the company is currently evaluating the limited published evidence suggesting potential role for inhaled nitric oxide to treat lung complications caused by the coronavirus.
Mallinckrodt (MNK.US) – share price bounced off the local resistance level located at $4.12 per share. If the positive sentiment continues, then one can expect to retest this level. Nearest resistance is located at all time lows namely $1.45 per share. Source:xStation5
Slack Technologies (WORK.US) share price dropped 2.1% in post market trading after the company announced lower forecast revenue for the first quarter. The forecast was 1% lower compared to average analyst estimate.
Slack Technologies (WORK.US) after failure to clear the local resistance level, now is trading in the middle of the consolidation zone between $19.54 and $23.95 per share. Source:xStation5
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