Day Traders Diary
The major averages will surge once again thanks to positive data from a potential coronavirus treatment from Gilead Sciences while investors digested a sharp drop in U.S. economic activity. The Dow Jones Industrial Average is set to open over 400 points higher. The S&P 500 and Nasdaq are set to open nearly 2% higher.
A study of Gilead's remdesivir drug conducted by the National Institute of Allergy and Infectious Diseases met its primary endpoint, the drugmaker said, lifting expectations for a potential coronavirus treatment. Gilead also released the results of its own study, which showed improvement in patients taking remdesivir to treat the virus. Gilead shares jumped 9.3 after a brief halt.
Sentiment was also lifted as Alphabet shares gained 8.6% in the premarket after the tech giant reported a revenue growth decline that was less steep than forecast. The company's YouTube ad revenues also beat expectations.Other mega-cap tech stocks such as Facebook climbed 4.2% before the bell. Amazon gained 0.6% while Apple climbed 1.7%.
The Gilead news along with the strong move higher from Alphabet offset news of steep drop in U.S. economic activity. U.S. GDP shrank by 4.8% in the first quarter for the country's biggest contraction since the financial crisis.
U.S. Treasuries are up slightly, while WTI crude futures have climbed 16.1%, or $2.00, to $14.33/bbl. The 2-yr yield is down one basis point to 0.19%, and the 10-yr yield is down three basis points to 0.58%. The U.S. Dollar Index is down 0.1% to 99.80.
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