Fighting a Pandemic- Good News from Economies & Stock Markets

  • Mar 26, 2020 AEDT
  • Team Kalkine
Fighting a Pandemic- Good News from Economies & Stock Markets

What we are subjected to currently has been undreamt and unimagined. Did you ever feel that there could occur a crisis so grim, that every country will be left with no option but to inculcate war time measures due to a virus? No, we did not either!

Quarantined, self-isolated and practicing social distancing, mankind has been subjected to a whole new level of predicament- all credits to the pandemic that everyone is ranting about- COVID 19. Undoubtedly, the closure of borders, social distancing measures and other appeals by the World Health Organization and governments are affecting economies and changing lifestyles (though they are the ultimate need of the hour!).

Consider the below figure to get a gist of what’s happening across the world (details as on 25 March 2020, Source: WHO)

 

                   

 

As the Reserve Bank of Australia’sGovernor Philip Lowe rightly stated-

 

                 

 

Good Facts You Cannot Miss

While there is enough tirade about what propelled the new coronavirus to spread, why is medical science still speculating a robust medicine for it and how long will it take for COVID 19 to eradicate from our daily discussions, we wish to acquaint you with a few silver linings that have been appearing of late-

  • According to a JHU CSSE report, globally, there have been over 113k recovery cases of COVID 19 (as on 26 March 2020, AEDT 12:22 PM)
  • Governments across the world have been announcing fiscal policies to address the crisis. For instance, America received a USD 2 trillion package, Australian PM Scott Morrison announced a $66 billion package, Indian PM Narendra Modi declared a ~USD 2.1 billion financial package.
  • The FDA is working in close association with government agencies and educational centers to probe the utilisation of the drug chloroquine for curing patients with mild-to-moderate COVID-19.
  • Scientists of ASX-listed Biotron Limited (ASX:BIT) were the first to identify and characterise a protein found in all coronaviruses and affirm that the virus could be inactivated if this protein is tapped (evaluation continues).

 

GOOD READ- Fiscal Stimulus In Full Swing; PM Unleashes Another $66b, Room for More

There’s More- Global Stocks Are Back in Action

If these optimistic views did not suffice to spark a ray of hope in you, as you struggle to plan a productive day while being isolated, let’s bring you some more- the stock market is getting better, finally!

We say so because stock markets across the globe have been trading in green after a worrisome sell off phase, as confidence seems to be regaining amongst investors at the back of stimulus packages being launched by governments-

  • On 24 March 2020, the Dow Industrial Average registered one of the biggest gains in a long time, rising over 11%
  • S&P 500 climbed by more than 9%
  • The yield on 10-year Treasuries was up by approximately 1 basis point
  • NASDAQ closed up by over 8% 
  • More recently, after the trade session on 25 March 2020, the benchmark S&P/ASX 200 in Australia was up by 5.5% and settled at 4998.1. The same index on 26 March 2020, was trading at 5082.8 points, up by 1.69 % (at AEDT 1:48 PM).

 

Now that we have gushed the much-needed optimism in you amid pandemic hours, we will focus on four stocks, renowned ones, that have demonstrated good resistance in the current nervous times-

Amazon, Microsoft, Domino’s Pizza & Adobe- Market Darlings?

Even as we discuss optimism (which is spreading, though parallelly with the virus), it is imperative to note that the COVID 19 stock market crash will remain harsh history and is yet to find a bottom.

However, some stocks have shown commendable resistance to the market volatility of late-

  • The e-commerce giant, Amazon, has been trading near its all-time high. Appearing to be the king of big tech stocks, the Company, which is the world's largest online retailer, is a rescue amid lockdown situations. Besides this, with social distancing being a global norm, AMZN’s streaming video demand has been gaining traction.

 

On 25 March 2020, during the market session, the stock was trading at USD 1,940.10, up by 1.9%, however, itwas at USD 1,885.84, down by 2.8% after market close.

  • A Company that has a market capitalisation of USD 1.12 trillion in pandemic times when economies are nosediving, Microsoft has been showing impeccable resistance in the stock market with one of the highest market valuations. On 23 March 2020, the Company made an announcement on the present lead-Amanda Langowski for the Windows Insider Program.

 

On 25 March 2020, the stock was trading at USD 148.34, moving up by 9.09%. Though the stock settled at USD 146.92, down by 0.96% aftermarket close.

  • Next up, we have what you’d want as you Netflix and chill, quarantined at home- Domino’s Pizza. The fast foodcompany has ample openings for delivery drivers, pizza makers, customer service representatives and managers as online food delivery has gained massive traction lately.

 

The stock traded at USD 343.56, rising up by 6.08%, during the market session. The stock was at USD 321.45, down by 6.44% aftermarket close on 25 March 2020.

  • Another stock that could not miss the eye is Adobe, a leader in tech. The Company is famous amid investors for its solid financial base, well-known products and resistance during a market downturn.

 

During the market session, the stock traded at USD 310, up by 0.89%, andsettled at USD 305.91, down by 1.32% after market close on 25 March 2020.

While our communities and our financial markets deal with the trouble of a rapidly unfolding situation, hopes and prays continue across the world while governments and medical science put their strengths to test. As Mr Lowe states-

                     


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