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S&P 500 slips after report on coronavirus drug trial

Stock MarketsApr 23, 2020 07:19PM ET
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© Reuters. A woman walks in the rain outside the New York Stock Exchange (NYSE) in the financial district of lower Manhattan during outbreak of coronavirus disease (COVID-19) in New York

By Noel Randewich

(Reuters) - The S&P 500 ended marginally lower on Thursday after a report that an experimental antiviral drug for the coronavirus flopped in its first randomized clinical trial, denting optimism that the pandemic's impact on the labor market was nearing an end.

All three main U.S. stock indexes fell back from gains of over 1% after the Financial Times reported that a Chinese trial showed that Gilead Science's (O:GILD) remdesivir did not improve patients' condition or reduce the pathogen's presence in the bloodstream.

Gilead said results from the study were inconclusive as it was terminated early.

Last Friday, Wall Street rallied in part because of a report that COVID-19 patients in a separate study had responded positively to remdesivir.

The market's sensitivity to news related to coronavirus therapies reflects investors' desperation for any indication of when the global economy might be able to start returning to normal.

"The hope as of last week was that Gilead could take the fear of dying off the table, which would result in a much quicker, cleaner, faster recovery. If that’s less likely today than it was yesterday, it is perfectly reasonable for the market to have sold off," said David Katz, chief investment officer at Matrix Asset Advisors.

Stocks rallied earlier after data that showed weekly U.S. jobless claims fell to 4.43 million from a revised 5.24 million. However, the numbers were still staggering, taking the total in the past five weeks to a record 26 million and wiping out all the jobs created since the financial crisis.

"The disappointing drug news stings, but considering another 4 million people lost their jobs, the disconnect between how well stocks have held up in the face of historically bad economic data continues," said Ryan Detrick, senior market strategist at LPL Financial.

Meanwhile, the U.S. Congress was preparing nearly $500 billion more in aid for small businesses and hospitals, which was expected to clear the House of Representatives later in the day.

The energy index (SPNY) rose 3%, easily leading the 11 S&P 500 sectors as oil prices recovered in a tumultuous week that saw U.S. crude futures crash below zero for the first time in history. [O/R]

U.S. stock indexes have rallied this month on a raft of global stimulus, but the benchmark S&P 500 remains more than 15% below its record high as worsening economic indicators foreshadow a deep global recession.

A survey showed U.S. business activity plumbed record lows in April, mirroring dire figures from Europe and Asia as strict stay-at-home orders crushed production, supply chains and consumer spending.

The CBOE volatility index (VIX) has retreated from 12-year peaks hit last month, but remains well above levels seen in the past two years and analysts have warned of another sell-off as corporate America issues worrying forecasts for the year.

The Dow Jones Industrial Average (DJI) rose 0.17% to end at 23,515.26 points, while the S&P 500 (SPX) lost 0.05% to finish at 2,797.8.

The Nasdaq Composite (IXIC) slipped 0.01% to 8,494.75.

Las Vegas Sands Corp (N:LVS) jumped 12% after the casino operator predicted a speedy recovery in Asia on pent-up gambling demand.

In extended trade, Intel (O:INTC) dropped over 5% after the chipmaker gave a quarterly profit forecast that missed analysts' estimates.

In Thursday's session, advancing issues outnumbered declining ones on the NYSE by a 1.64-to-1 ratio; on Nasdaq, a 1.50-to-1 ratio favored advancers.

The S&P 500 posted six new 52-week highs and one new low; the Nasdaq Composite recorded 36 new highs and 21 new lows.

Volume on U.S. exchanges was 11.7 billion shares, compared with a 12.7 billion-share average over the last 20 trading days.

S&P 500 slips after report on coronavirus drug trial
 

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Comments (40)
Kaveh Sun
Kaveh Sun Apr 23, 2020 9:49PM ET
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W.H.O just returned usa a favor. The market wiped ou a few b on their accidental release. Who wins?
franklin neversoy
franklin neversoy Apr 23, 2020 8:28PM ET
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So the futures are in the toilet because of crappy trials in China don’t trust China trials wait for Chicago results
Jo Joe
Jo Joe Apr 23, 2020 7:35PM ET
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So sad... Trump force the CDC doctors to lie.. about 2 wave of this autumn
Michael Angelo
Michael Angelo Apr 23, 2020 5:52PM ET
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Interesting what I can dissect from news and the market. Liquidity, fed Santa and bring in a vaccine that is just a blef. Ok, let's take the other side and ride the trend.
Tutor Joseph
Tutor Joseph Apr 23, 2020 4:56PM ET
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Drugs are not going to work. Dow is to plunge another 2000 points by end April.
Jurgen Daub
Jurgen Daub Apr 23, 2020 4:56PM ET
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or more a few months later
franklin neversoy
franklin neversoy Apr 23, 2020 2:56PM ET
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Gilead has a promising drug it’s the Chinese that can’t figure out how to run trials don’t trust their results Chicago had promising results
Don Getty
Don Getty Apr 23, 2020 2:56PM ET
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chicago's results were based on 112 people and 2 died - their results didn't have age groups or much in the way of other data - so I wouldn't rush out and buy the world - there simply hasn't been enough clinical testing yet
franklin neversoy
franklin neversoy Apr 23, 2020 2:51PM ET
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Gonna be a roller coaster ride into the close
franklin neversoy
franklin neversoy Apr 23, 2020 2:23PM ET
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We will find out if selling accelerates soon could be an ughly close thanks who for releasing that trial report they did it on purpose
franklin neversoy
franklin neversoy Apr 23, 2020 2:17PM ET
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Who released report on purpose no accident
franklin neversoy
franklin neversoy Apr 23, 2020 2:15PM ET
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Those results weren’t accidentally released it was on purpose and they know it
franklin neversoy
franklin neversoy Apr 23, 2020 2:11PM ET
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So now the markets bouncing from red to green over crappy China drug trials ***
franklin neversoy
franklin neversoy Apr 23, 2020 2:08PM ET
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Now China has capped today’s agains day not over yet ugh now it’s all bets off unless pelosi an co passes that bill before 3:00 cst
maga king
maga king Apr 23, 2020 2:00PM ET
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fake news!
Chris Martin
Chris Martin Apr 23, 2020 2:00PM ET
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Ah a man of few words. Better that way sometimes. I suppose it helps you remain calm. Semper Fi !!!
franklin neversoy
franklin neversoy Apr 23, 2020 1:55PM ET
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Thanks China for markets going red 🤬 ugh
franklin neversoy
franklin neversoy Apr 23, 2020 1:53PM ET
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So are the markets going shake off crappy drug trials from China or just fall ?
franklin neversoy
franklin neversoy Apr 23, 2020 1:51PM ET
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So China crappy data is ruining a good day 🤬ugh
Tokyo Japan
Tokyo Japan Apr 23, 2020 1:51PM ET
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I feel as same as you
David Salas
David Salas Apr 23, 2020 1:42PM ET
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lol - from which deep hole does Wall Street pulls these sentiments off? The worse of the labor market is over? I guess anything less than 4.5 million isn't so bad, after all that's just 7 times the previous all time high before March 21, right?
Silverbug 19
Silverbug 19 Apr 23, 2020 1:27PM ET
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HCQ baby
franklin neversoy
franklin neversoy Apr 23, 2020 1:11PM ET
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Don’t go with China drug trials
franklin neversoy
franklin neversoy Apr 23, 2020 1:08PM ET
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So gilead getting bad rap on a promising drug because China submitted a non event report but trials in Chicago were good
Michael Angelo
Michael Angelo Apr 23, 2020 12:21PM ET
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Why the curve is flattening, disease or unemployment, EASY : study the logistic function (science) and forget reading tea leaves (fetichery). Good luck.
Sun Moon
Sun Moon Apr 23, 2020 12:04PM ET
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(Reuters) - Wall Street <nonstop stream of drivel>
嘉偉 吳
嘉偉 吳 Apr 23, 2020 11:51AM ET
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2600/15800=> 16.4% 16.4+2.3%= 18.7 18.7% employee have no jobs is perfect. American don't need to work.
Joanna Yin
Joanna Yin Apr 23, 2020 11:37AM ET
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Casino in Asia? Who is going to Casino during this pandemic? don't understand how Wall Street think about economic in next 12 months ……
Kaveh Sun
Kaveh Sun Apr 23, 2020 11:32AM ET
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It went up because the new 500b stimulus. Reuters stop giving fake news.
 
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