Day Traders Diary
The major averages went on a wild ride following a report Gilead's drug stock may not be the right treatment for the coronavirus. The Dow Jones Industrial Average closed up 39 points higher, or 0.2%, at 23,515. Earlier in the day, the Dow rallied more than 400 points. The S&P 500 dipped 0.1% to 2,797 while the Nasdaq Composite closed just below breakeven at 8,494. Both the Nasdaq and S&P 500 were up more than 1% at their session highs.
The Financial Times cited documents accidentally published by the World Health Organization — that Gilead Sciences' drug remdesivir did not improve patients' condition or reduce the coronavirus pathogen in their bloodstream. Those findings, according to the report, came from a clinical trial in China. Equities attempted a rebound on the back of Gilead's statement before closing along the flatline. Gilead Sciences shares closed 4.3% lower.
The report and Gilead's subsequent statement came a week after STAT News reported that Chicago patients taking remdesivir to treat coronavirus were recovering rapidly from severe virus symptoms. That report lifted market sentiment, sending stocks sharply higher.
The energy sector outperformed amid a 21.7% spike in WTI crude futures which are now up 45% since Tuesday's settlement price.
In Corporate news. Union Pacific rose 3.5%, Eli Lilly rose 2% and CSX rose a percent thanks to positive earnings results and/or guidance.
U.S. Treasuries traded near their flat lines during the session. The 2-yr yield increased one basis point to 0.22%, while the 10-yr yield declined one basis point to 0.61%. The U.S. Dollar Index increased 0.1% to 100.50.
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