Your Wednesday Market Blip 4/29/20

Your Wednesday Market Blip 4/29/20

Stocks powered higher thanks to positive earnings and news of positive virus drug treatment from Gilead Sciences. The Dow tacked on 532 points on heavy trade to close at 24,633. IBD shows markets in rally mode while BTS is part in part out saying the risks of a pullback are significant.
Google (aka Alphabet) reported good earnings with a 10% revenue gain and bottom line profits that were flat from a year ago. While advertising revenue fell late in the quarter due to impacts of the virus shut down, the company made up for that with a 52% jump in cloud computing revenue. Shares bolted higher on the news.
Gilead Sciences has been testing its remdesivir drug as a virus treatment and the latest results were positive in treating people infected with corona. The FDA is working closely with the company and the NY Times is reporting that FDA approval could come soon. Even Dr. Fauci called the test results “quite good news”.
Boeing reported a loss of $1.7 billion and negative cash flow of $4.7 billion. Revenue fell 26% and the company plans on laying off 10% of its workforce. CEO Dave Calhoun noted that stability in defense and space divisions should prevent mass layoffs and they are looking to get the 737 Max recertified soon and begin production this year at a modest pace with a planned ramp up to 31 planes per month in 2021. The company delivered 50 aircraft in the quarter which included 29 Boeing 787s.
Oil prices jumped over 20% after the Energy Information Agency reported a stockpile build that was smaller than expected. Goldman Sachs put out a research piece saying the demand trough for oil is near and with production cuts starting to make a difference it could signal an early positive tone for energy stocks. While oil demand is off significantly First Trust reports that natural gas demand is off only 1% year to date. 40% of gas goes to power plants for electric generation and 70% of gas transmission in paid for by utilities who buy it to fuel power plants or pipe it to homes for heating and cooking.