On Friday, June 19, the only financial and economic news for US stock exchanges was the publication of the current account balance of the US balance of payments in the 1st quarter with a fixed deficit of $ 104.2 billion against the expected $ 102.9 billion, with a balance of payments deficit of 4 -th quarter was revised from 109.8 to 104.3 billion dollars.
The main pressure on the course of exchange trading was exerted by several disappointing news at once. The World Health Organization has announced that the coronavirus pandemic has entered a new and dangerous phase, as evidenced by new outbreaks of disease in China and several US states. Moreover, a record increase in infections was recorded in Texas and California. Against this background, Apple has decided to re-temporarily close 11 of its branded stores in Florida, Arizona, North and South Carolina, where there is also a dangerous epidemiological situation. And on top of that, Boston Fed President Eric Rosengren in his speech on Friday cautioned against too optimistic hopes for a quick economic recovery and a significant reduction in unemployment, even in the face of large-scale financial stimulus measures taken by the Fed.
All of this, together, very upset investors and a negative trend prevailed in the stock market. The effect on the course of the trading session was also due to the fact that on that day there was a quarterly end of trading with four types of futures and options on indices and stocks at once, which in aggregate usually leads to large volumes of sales and increased volatility, which was observed this time as well. In the end, the Dow Jones and S&P 500 indexes finished in negative territory, while the Nasdaq index hardly managed to avoid this fate. At the same time, the triad of major stock indices with varying degrees of success achieved a gain in the last week.
The Dow Jones industrial average index fell by 208.64 points or 0.80% to 25871.46 points, the advance for the week was 1.0%. The Standard & Poor’s 500 index fell by 17.60 points or 0.56%, closing at 3097.743041.31 points and adding 1.9% during the week. The Nasdaq Composite Index rose 3.07 points or 0.03% to 9946.12 points, the weekly gain was 3.7%.
In the elite echelon of the American economy, the Tor-30 in the red zone finished the vast majority of companies (22). The most affected by the session were the multimedia empire Walt Disney (-3.4%), the large industrial holding Raytheon Technologies (-3.0%) and the flagship of the aviation industry Boeing (-2.7%). The best result as part of the “blue chips” was achieved by the world’s largest pharmacy company Walgreens Boots Alliance (+ 5.1%) with a wide margin from other trading leaders.
The TrueCar portal, which studies the market conditions for new and used cars, added 3.6% due to the increased demand for its services in May and June.
The largest US cinema chain owner, AMC Entertainment Holdings, lost 2.0%, announcing the opening of its cinemas for viewers in mid-July, while canceling its previous decision that visitors should not wear face masks.
Slack Technologies, the developer of the specialized corporate messenger Slack, retreated by 3.2% as a result of a decrease in the recommendation rating for its shares by Goldman Sachs Group analysts.
Ventas Investment Trust Fund, specializing in real estate in the field of medical facilities and nursing homes, slid 9.0%, announcing a reduction in quarterly dividends by 43%.
Retailer At Home Group, which sells home decoration and household goods, fell 11.2% due to disappointing quarterly financial results.
The price of gold futures for delivery in August at the end of trading on COMEX increased by $ 21.90 or 1.3% to $ 1,753.00 per troy ounce.
The investment attractiveness of gold as a safe investment zone has increased due to the alarming increase in the number of COVID-19 diseases in various regions of the USA and China. According to the results of the 2nd consecutive successful week, the precious metal added 0.9%.
The price of futures for Light crude oil for delivery in July following the results of trading on the NYMEX increased by 91 cents, or 2.3%, to the level of $ 39.75 per barrel.
Oil added in price after a series of recent reports confirming that the OPEC cartel (primarily Saudi Arabia) and a number of other leading oil-producing countries have complied with their obligations under an agreement to reduce oil production. Compared with the final level of last Friday, oil went up by 9.6%.