Despite a Gloomy March, Investors Are Optimistic about a Potential COVID-19 Treatment

1. Despite a Gloomy March, Investors Are Optimistic About a Potential COVID-19 Treatment Retail and factory production have been hard hit, and analysts believe the worst is yet to come. However, a possible treatment for coronavirus fills markets with hope. Trade Zero 204 Church Street SandyPort West Bay Street Nassau Bahamas www.tradezero.co+1.954.944.3885

2. US retail has been at the receiving end lately. March was a month to forget, with major declines posted. Factory output also suffered historic declines. But analysts believe the full effect of the lockdown enforced by the coronavirus pandemic is only yet to be felt. Retail Sector and Factories Suffer Overall retail sales’ value sank 8.7% from the previous month. As per data from the Commerce Department, this has been the greatest decline ever recorded since 1992. Output from US factories dropped in March. According to data from the Federal Reserve, this drop was the greatest since 1946. People Stocked up on Just Essential Goods But in the food and beverage sales segment there was a record surge of 25.6%. This was understandable as people wanted to pile up essential goods. That explains why there was a rise in sales at personal care and health stores as well. Sales at clothing stores dropped by half, which can be explained by the fact that people wouldn’t be thinking about adding to their wardrobe when they’re preparing to survive in a lockdown situation. Bars and restaurants were down too, by 26.5%. Non-store retailers and general merchandise stores experienced increased sales. General Business and Construction Activity Suffer The general business conditions index by the New York Fed had a 56.7-point drop to minus 78.2, which was the lowest since 2001. The National Association of Home Builders or the Wells Fargo Housing Market Index revealed that homebuilder sentiment in the US dropped to its lowest level in nearly 8 years. That can be explained by the pandemic that quarantined potential buyers and workers. The latter has caused construction activity to grind to a halt. www.tradezero.co+1.954.944.3885

3. The Worse Is Still to Come The worst part, though, is that April is projected to be worse still, since the full effect of the lockdown would only be realized this month. In March, many businesses were still open, but the data was still discouraging. With the full lockdown experienced in April, the data could be more depressing. Bloomberg economists believe the retail sector would only begin to recover by the year end and personal consumption would recover by the third quarter. Business investment could continue to experience a downturn in that period. Success of Coronavirus Drug Instils Hope Though these reports indicate gloom, Dow futures managed to jump 800 points since investors are hopeful of some coronavirus treatment materializing. Researchers from the University of Chicago have reported seeing quick recovery in 125 Covid-19 patients who were administered the remdesivir experimental drug by Gilead Sciences ($GILD). This clinical trial has instilled hope that a commercially available treatment for the pandemic could arrive soon. With direct access trading platforms on offer online, you can look to get started in trading stocks. The times may be tough, but with expert guidance you can pick the right trades. www.tradezero.co+1.954.944.3885